AirBnB is to stop hosts in London from letting their properties for more than 90 days a year without official consent - similar to a scheme introduced by the platform in Amsterdam.
Under the proposals, hosts renting out entire properties will be notified as they approach the limit and given details of where to seek an extension.
The move begins next spring and brings the home-sharing website into line with UK law.
"We want to be good partners to London... and ensure home-sharing grows responsibly and sustainably" says a statement from Airbnb.
Many councils, especially in London, are thought to believe some unscrupulous landlords are not using their properties for long-term tenants and instead use them for serial high-revenue holiday lets, often in contravention of planning regulations.
The Times newspaper says it has seen correspondence from London Mayor Sadiq Khan suggesting that he would take action against Airbnb if required.