Collapse of holiday lets
Landlords drop Airbnb for long term rental market
Lettings are now being diverted to residential tenants (pic: Terry Murden)
Property owners are shifting from short to long term letting as coronavirus leaves a huge hole in the holiday lets sector.
Airbnb owners are looking to get out of the tourist market and find tenants for their properties.
The switch is likely to be welcomed by communities torn apart by a regular turnover of short stay visitors.
There has also been a rush of tenants leaving to return to live with parents, creating a sudden glut of property on the market.
Property firm Apropos by DJ Alexander has been approached by hundreds of property owners in the last two weeks desperate to enter the long-term letting market after wholesale cancellations of holidays.
This sudden expansion of available property is likely to lead to a fall in rents in the short to medium term, the firm says.
David Alexander: inundated with enquiries
David Alexander, joint managing director of apropos, said: “We have been inundated with enquiries from Airbnb owners. They have had all their bookings cancelled and there is little likelihood of an upturn in the market any time soon, so they are transferring to the long-term market.
“We have also had owners with properties in the Homes in Multiple Occupation (HMO) market wanting to rent them out, as students have left and returned home and there is no clear indication of when they will return so landlords are hoping they can rent these properties out until the market returns.”
He added that a number of tenants have given the statutory one-month notice and are returning to live with their parents or relatives because of the coronavirus outbreak.
“The result is that we would usually have around 100 properties available at this time of year and we currently have 350,” he said.
“The result will be a reduction in rental prices. Overcapacity results in lower rents so I can see prices falling over the next few months and even when the coronavirus crisis is over I believe that many tenants will be able to negotiate lower rents as the market will remain over-supplied.”