Between July 2024 and June 2025, nearly 94 million guest nights were spent in short-term lets across the UK — a jump of over 10% from the year before. That figure, from the latest ONS data on short-term lets, tells you something important: this isn’t a niche trend anymore. It’s a structural shift in how people travel, and it’s reshaping the places where they stay.
I’ve been writing about UK property and housing for years, and this is the question that keeps coming up in conversations — from homeowners in Cornwall to councillors in Edinburgh. What happens when a growing share of a town’s homes become holiday lets? The short answer is that it creates real pressure on local housing supply, pushes up rents, and changes the character of neighbourhoods. But the full picture is more nuanced, and the solutions aren’t as simple as banning Airbnb overnight. Here’s what you actually need to know.
If you’re a homeowner in a popular area, you might be wondering whether listing your property on a platform like Airbnb is a smart move. It can be — but the wider effects on your community are worth understanding first. And if you’re a renter or a would-be buyer in a tourist-heavy town, you’re probably already feeling the pinch. The pressure on the UK rental market is real, and short-term lets are part of that story. A simple video doorbell can help you keep an eye on your property if you do decide to let it out, but the bigger question is whether the neighbourhood can absorb the change.
What short-term lets actually mean for your neighbourhood
When I say “short-term lets”, I mean properties booked through platforms like Airbnb, Booking.com, and Expedia Group — not hotels, B&Bs, or campsites. The ONS definition is specific, and it matters because these platforms operate differently from traditional accommodation. They turn residential homes into commercial assets, often without the same planning or safety rules.
The core issue is simple: every home that becomes a full-time holiday let is one less home for a local family. In places like Cornwall, where the ONS recorded 3.57 million guest nights in the latest period, the effect on housing supply is tangible. August 2024 alone saw over 800,000 guest nights in Cornwall — ten times the number in January 2025. That seasonal spike means whole communities empty out in winter and fill up with visitors in summer. It changes the feel of a place, and it makes it harder for local workers to find somewhere affordable to live. If you’re thinking about listing your property, my advice would be to check whether your local council has introduced any restrictions first — some areas now require planning permission for change of use.
Why this matters for renters, buyers, and local communities
The impact isn’t abstract. In Westminster, guest nights rose 16.7% year-on-year to over 4.1 million. That’s a central London borough where housing is already scarce and expensive. Every flat that’s used as a short-term let instead of a long-term rental pushes up rents for everyone else. The decline in homeownership is already making life harder for younger generations — short-term lets add another layer of competition for housing.
Consider a scenario: you’re a nurse working in a coastal town. You earn a decent salary, but the only flats available are either holiday lets or expensive rentals aimed at second-home owners. You end up commuting from a cheaper area, or you leave altogether. That’s not hypothetical — it’s happening in places like Gwynedd, where guest nights rose 13.3% to over 1.2 million, and in Belfast, up 12.6% to over 829,000. The Inside Airbnb project has documented how entire-home listings dominate the market in most cities, meaning the “sharing economy” narrative — spare rooms rented out occasionally — doesn’t match reality. What I notice is that the conversation often focuses on tourists, but the people most affected are the ones who live there year-round.
If you’re a landlord weighing up short-term versus long-term lets, the financial difference can be significant. But the regulatory risk is growing. Scotland already requires a licence. England is moving towards a registration scheme. Getting caught operating without the right permissions can mean fines or enforcement action. A tenant and landlord lawyer can help you understand the rules in your area before you commit.
Where people go wrong with short-term lets
Most of the mistakes I see come from a misunderstanding of how quickly the landscape is changing. Here are the most common ones.
Assuming the rules don’t apply to you
Many hosts assume that because they’re only letting out a room or a second home, they don’t need planning permission or a licence. That’s not always true. In Scotland, all short-term lets need a licence since October 2022. In England, some councils have introduced Article 4 directions that remove permitted development rights for change of use. If you’re in a designated area and you don’t check, you could be operating illegally. The ONS data shows that guest nights increased across all four UK nations, but the regulatory response has been uneven. What’s allowed in one council area might be banned in the next.
Ignoring the impact on neighbours
Short-term lets bring a constant turnover of strangers. That means noise, parking issues, and a lack of the informal oversight that comes with long-term neighbours. In areas with high concentrations of holiday lets, permanent residents can feel like they’re living in a transient hotel zone. The Inside Airbnb research highlights how this disrupts communities — not just housing supply, but the social fabric. If you’re hosting, a door alarm sensor can help manage access, but it won’t solve the relationship with your neighbours. Setting clear house rules and providing a local contact number goes a long way.
Underestimating the seasonal swing
Cornwall’s guest nights in August 2024 were ten times higher than in January 2025. That kind of seasonality creates cash flow problems for hosts who rely on summer income to cover winter costs. It also means local services — from waste collection to policing — are stretched in summer and underused in winter. If you’re buying a property specifically for short-term lets, you need to model the off-season realistically. The ONS data shows that January had the fewest guest nights across both periods, with just 4.5% of the annual total. That’s a long, quiet stretch.
Failing to plan for regulation
The regulatory direction is clear: more oversight, not less. England’s proposed registration scheme, Scotland’s licensing system, and various local Article 4 directions all point towards tighter control. Hosts who ignore this risk being caught out when the rules change. The practical guide for UK property investors covers how to factor regulatory risk into your planning. My view is that if you’re not already compliant with the rules in your area, you should sort that out before listing another booking.
→ Scroll right to see all columns
| Local Authority | Guest Nights (Jul 2024 – Jun 2025) | Year-on-Year Change |
|---|---|---|
| Westminster | 4,107,880 | +16.7% |
| Cornwall | 3,574,320 | +8.6% |
| City of Edinburgh | 3,030,570 | -1.4% |
| Highland | 2,698,780 | +7.7% |
How to navigate short-term lets responsibly
Writing about topics like this takes real time and research. If you buy something through an Amazon link on this page, I may earn a small commission — at no extra cost to you. It’s one of the things that makes it possible to keep BritWealth free to read. I only link to products that are genuinely relevant to the article.
Whether you’re a host, a neighbour, or a local councillor, there are practical steps you can take. Here’s what I’d focus on.
Check your local rules before you list
Start with your council’s website. Search for “short-term let licensing” or “Article 4 direction”. If you’re in Scotland, you need a licence from your local authority — no exceptions. In England, some areas require planning permission for properties let for more than 90 nights a year. The rules are fragmented, so you can’t rely on national guidance alone. If you’re unsure, a property lawyer can give you a definitive answer based on your specific property and location. Don’t assume that because your neighbour is doing it, it’s legal.
Understand the financial reality
Short-term lets can generate higher income per night than long-term rentals, but the costs are higher too. You’ll pay for cleaning, laundry, platform fees, utilities, and maintenance between guests. You also face void periods — especially in seasonal locations. The ONS data shows that April saw the largest increase in guest nights (25.8%), but March actually saw a decrease of 8.5%. That volatility matters. Run the numbers for a full year, not just peak season. Factor in the cost of compliance too — licensing fees, safety certificates, and potential legal advice all add up.
Be a good neighbour
If you do host, think about how it affects the people living next door. Provide a welcome pack with house rules, noise restrictions, and a local contact number. Consider installing a home security starter kit with outdoor cameras to monitor activity, but make sure you’re complying with data protection laws — you can’t film shared spaces or your neighbours’ property. Respond quickly to complaints. A single bad experience can sour the whole street, and in areas where councils are already considering restrictions, that kind of friction can tip the balance towards tighter regulation.
Plan for the future of regulation
The UK government has consulted on a mandatory registration scheme for short-term lets in England. It’s not law yet, but it’s coming. Scotland’s licensing system is already in place. Wales is consulting on its own approach. The direction of travel is towards more transparency and control. If you’re investing in a property for short-term lets, build regulatory compliance into your business plan from day one. The impact of inflation on UK property is another factor to consider — rising costs for maintenance and mortgage payments can eat into your margins quickly.
- 1Check your local council’s rulesSearch for “short-term let licensing” or “Article 4 direction” on your council’s website. If you’re in Scotland, a licence is mandatory. In England, check whether planning permission is needed for change of use.
- 2Run a full-year financial modelInclude platform fees, cleaning, utilities, maintenance, void periods, and licensing costs. Use ONS data to understand seasonal patterns in your area — Cornwall’s August peak is ten times its January low.
- 3Set up neighbour-friendly operationsProvide clear house rules, a local contact number, and consider security measures like a video doorbell. Respond to complaints quickly to avoid friction that could lead to tighter local regulation.
- 4Stay ahead of regulatory changesEngland’s registration scheme is under consultation. Scotland’s licensing is live. Wales is consulting. Build compliance into your plan now, not after the rules change.
Frequently asked questions about short-term lets
Do I need a licence to run an Airbnb in the UK? ▾
How many nights can I let my property without planning permission? ▾
What’s the difference between a short-term let and a holiday let? ▾
Can my council ban short-term lets entirely? ▾
Are short-term lets pushing up rents in my area? A water leak detector won’t help with that, but the data suggests yes — in hotspots like Westminster and Cornwall, every home used as a short-term let reduces long-term supply. ▾
The rise of short-term lets isn’t going to reverse overnight. Nearly 94 million guest nights in a year is a massive market, and it’s still growing. But the rules are tightening, the data is getting better, and communities are pushing back. If you’re a host, the smartest move is to get compliant now — before the regulations catch up with you. If you’re a resident feeling the pressure, get involved in your local council’s consultations on short-term let licensing. Your voice matters more than you think.
If this was useful, you might also want to read Is renting forever the UK’s new normal?.
Sources and Further Reading
From pubs to flats: repurposing underused spaces in UK towns — Explores how changing land use affects local communities, a natural companion to the short-term let debate.
Short-term lets through online collaborative economy platforms, UK: latest. Office for National Statistics, 2025.
Inside Airbnb: Adding data to the debate. Inside Airbnb, 2025.
