More than three-quarters of estate agents in tourist hotspots say the number of short-term lets in their area has jumped over the past four years, sparked by the pandemic.  

The trade body Propertymark says this figure of 76%, only falls to 33% among agents operating outside tourist hotspots, in a report called, The Impact of Short-Term Lets on UK Housing. Agents say increased housebuilding is the key solution to the problem. 

The study says: “The number of short-term lets has grown steadily in many areas of the UK over the past four years with a peak during the recent pandemic when many decided to holiday in the UK rather than risk travel abroad. There appears to have been some fall off since, but the number of short-term lets is steadily rising once again.” 

Most agents agree that the rise of these types of lets will have “little impact on the sales market”, says the survey. But they “overwhelmingly agree that it will negatively impact the private rented sector through a reduction in supply of quality accommodation and pressure on rents”. 

This month, the Scottish government became the first nation in the UK to monitor short-term lets by requiring all councils to have an operational licensing system in place. 

The Scottish government said the move “was developed in response to concerns raised by residents about the impact of short-term let properties on their local communities. It gives councils flexibility to develop licensing schemes that meet local needs, and sits alongside powers for councils to establish short-term let control areas”. 

In March, the Welsh government lifted the number of days a short-term let property can avoid council tax by registering their properties as a business to 182 days a year, from 70 days. 

The move is aimed at making sure these properties are used primarily as working short-term lets rather than as second homes. 

The Welsh government said: “The change is intended to provide a clearer demonstration that the properties concerned are being let regularly as part of genuine holiday accommodation businesses making a substantial contribution to the local economy.” 

The estate agent’s association report says that “agents see the increased construction of homes in the private and social sectors as the primary solution to problems caused by short-term lets.  

“An increase in supply would ease tension on the private rented sector and limit house price inflation so that local first-time buyers can get on the ladder.  

“Regulation which could potentially limit the number of short-term lets and ensure a level regulatory playing field with the private rented sector is a close second to this solution.” 

Propertymark says its report is based on 195 responses to a survey of UK property agents conducted between 31 September and 14 October. Respondents reported from firms which represented over 2,000 branches.