Airbnb profits prove need for regulation

NEWS of seasonal bumper profits for Airbnb comes as the Government’s indefensible lassitude in addressing the housing emergency continues. The demand for short-term letting has guaranteed that the owners of the website are kept busy. At the same time, the scarcity of affordable rental properties is ignored by the State. This is hurting both the employed and the unemployed which makes the inaction of the Government all the more impossible to explain.

This year, Barcelona launched a successful crackdown to stop illegal lettings, but also to track Airbnb.

It forced the site to remove a couple of thousand listings which did not have the requisite licence, through the threat of legal proceedings and the prospect of substantial fines.

Subsequently, Airbnb and the city struck a deal which gives Barcelona officials access to data on lettings. Now city officials can monitor and control the situation.

So, there is a model for making sure that rogue rentals are reined in. Revenue has already signalled that it is keeping a close eye out for those who rent but do not declare the income.

A landlord will inevitably seek to maximise profit by opting for short-term lets. Yet this inevitably leaves the long-term renter out in the cold and drives up the cost.

Clearly the arguments for regulating this area are overwhelming. The rights to own – or rent – a home cannot be left arbitrarily in the hands of speculators. But Government failure to meaningfully address the gulf between demand and supply for new homes means it is open season on tenants.