Governments across the UK must do more to understand the scale of short lets and the threat they may pose to housing markets.

That’s the view of letting agents’ trade body Propertymark, which has conducted a survey of members to assess the problem.

The rise in short term lets impacts both the sales and lettings market in different ways but lettings agents overwhelmingly agree that in the long run it will negatively impact the private rented sector., the Propertymark survey shows.

The research also highlights the localised nature of the issue, with 76 per cent of agents operating in tourist hotspots reporting an increase in the number of short term lets over the past four years. This dropped to only 33 per cent of agents operating in non-tourist hotspots.

Data collected separately as part of Propertymark’s monthly lettings market snapshot reveal that between five and 10 per cent of member agents have at least one short-term let property in their portfolio. 

Timothy Douglas, head of policy and campaigns, comments: “The issues surrounding short-term lets are back in focus as housing availability and affordability is high on the agenda. Feedback from our members shows that the issue is complex, very localised and is having a significant impact on the use and supply of housing across the country. 

“Both the Scottish and Welsh Governments have taken action to address the issue and for England the vast majority of our members support the introduction of a licensing scheme with physical checks for short-term let premises as well extending the current health and safety requirements and tenant protections to short-term lettings.

“As highlighted in our report, the challenge for government is balancing the flexibility that short-term letting brings with the existing rules for longer term renting, the tax system and the impact on communities as well as creating ways in which local authorities can gather data and control short term lets in their areas.”   

The UK government is considering introducing a licensing scheme with physical checks for short-term let premises in England. Some 68 per cent of respondents to Propertymark’s survey supported its introduction this as the primary solution to increase the supply of private rental sector homes.

You can see the full Propertymark report on short lets here. l