The HMRC probe into the tax affairs of Airbnb landlords marks the end of the honeymoon period for short-term rentals.
Despite warnings from Apropos, I still think the short-term lettings market will remain lively despite the extra costs some landlords will incur, though some corporate landlords may decide to take their business elsewhere.
More casual landlords can still rent out their places with minimal tax obligations, especially as the Rent a Room Scheme lets people earn £7,500 per year tax-free from letting out furnished accommodation in their home.
For me the HMRC’s approach is a positive development, as it evens the playing field between short-term and long-term lets – hosts that use Airbnb on an industrial scale really should pay their fair share.
I can see why some people are concerned though, considering the HMRC can look back on hosts’ activities in the past six years.
This isn’t the first time Airbnb has hit the headlines this year.
I don’t know if anyone remembers, but earlier in the year ARLA Propertymark found that 10% of landlords were thinking of switching to short-term lets.
At the time I thought this could be grounds to regulate short-term lets, as I didn’t like the idea of communities losing their character due to areas becoming flooded with short-term residents.
I reasoned that ideally there should be a balance of short and long-term lets.
Now however the UK government might want to hold fire on regulation – it might be worth seeing the impact the HMRC’s probe has on the short-term rental market first.
Ryan Bembridge, Editor, PropertyWire
