The government has been urged to clamp down on central London’s short let sector after new research found at least half were being rented out unlawfully.

A report by Central London Forward – a partnership of inner-city boroughs – reveals that more than 50% of the 117,000 short-term lets listed across the capital in 2024 were booked for more than 90 nights in a year which, unless planning permission has been granted, is against the law.

Doubled

Data shows that in 2015, there were fewer than 30,000 short-term lets in London, which more than doubled throughout 2016 to 60,000. By last year, one in 32 London homes were used as a short let, with 67% concentrated within the 12 central boroughs, creating a loss of housing stock for long-term residents.

Central London Forward says only 1% of hosts own portfolios of more than 21 properties, but these investors – mainly businesses - own almost 25% of total listings. Across central London, income from short lets is equal to 8% of total PRS income; in Camden, it’s estimated that an owner of a one-bed studio could earn £1,072 per month on the private rental market, or £1,173 per week by short-term letting the property, which works out at £3,519 per month if occupied on 75% of nights.

Ministers

The report calls on ministers to force short-term let rental websites to share individualised, unit-level data with local authorities and the government. It also wants the government to devolve power to local areas to set up licensing schemes, empowering local authorities to manage their impact.

The government has promised to introduce a short-term let registration scheme and last week Housing Minister Matthew Pennycook suggested it was also looking at strengthening planning laws to curb their growth.

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