Debunking Myths About Airbnb and Rent Increases

In March 2019, the Livestay team attended the Short Stay Show at London’s ExCeL Centre, a key event for the short-term rental industry. Discussions at the conference focused on leveraging high-spec properties and residential homes to deliver exceptional guest experiences while maximising returns for landlords.

 

The Appeal of High-Spec Properties

Investors are increasingly turning to high-spec properties as a competitive advantage in the short-term rental market. These premium homes cater to discerning guests who value luxury and comfort, resulting in:

• Higher occupancy rates and premium pricing.
• Enhanced revenue streams for landlords.
• Stronger guest retention due to exceptional experiences.

 

Case Study: Barcelona’s Rental Market

For years, Barcelona has been at the centre of debates over rent increases, with many pointing fingers at platforms like Airbnb. However, evidence up to 2019 suggests Airbnb is not the driving force behind rising rents. Instead, it has contributed positively to:

• Supporting tourism by offering unique accommodation options.
• Providing property owners with supplemental income and flexibility.

 

Licensing Caps: A Controlled Environment

Barcelona’s strict licensing system for short-term rentals capped the number of rental licenses at 10,000 by 2019, stabilising the availability of short-term let properties. Despite these controls:

• Rent prices in Barcelona increased by nearly 50% over the past decade.
• Similar rent hikes occurred in Madrid, where short-term rental regulations are more lenient.

This data underscores that rent increases are driven by broader factors like housing demand, economic trends, and population growth—not short-term rental platforms.

 

The Broader Economic Impact of Airbnb

Even within tightly regulated markets like Barcelona, platforms like Airbnb bring significant economic benefits:

1. 1. Boosting Tourism Revenue
Airbnb attracts tourists who might not choose traditional hotels, driving income for local businesses such as restaurants, shops, and cultural attractions.

2. 2. Providing Flexible Income for Property Owners
For many, Airbnb offers a lifeline by helping offset living costs or mortgage payments. This additional income often supports property maintenance or reinvestment.

3. 3. Encouraging Urban Renewal
Revenue from short-term lets incentivises property owners to improve and maintain their homes, enhancing the overall appeal of neighbourhoods.


 

Lessons for Other Cities, Including London

Barcelona demonstrates that limiting short-term rental properties does not necessarily stabilise rent prices. Instead, it highlights how well-regulated short-term lets can coexist with broader housing policies while supporting the local economy.

 

London’s Short-Term Rental Landscape in 2019

As of March 2019, London’s short-term rentals accounted for a small fraction of the housing market:

• Airbnb listings represented less than 2% of total housing stock.
• Properties were typically booked for around 50 nights per year, often serving mixed purposes rather than being dedicated to short-term lets.

These figures indicate that short-term rentals have a negligible impact on long-term rent increases. Population growth, housing shortages, and increased demand remain the primary drivers of rising rents.

 

Livestay’s Commitment to a Balanced Approach

At Livestay, we are passionate about creating a harmonious balance between investor profitability and guest satisfaction. By focusing on high-spec properties, we help landlords:

• Achieve higher returns through premium listings.
• Deliver exceptional guest experiences that foster repeat bookings.
• Leverage innovative strategies to stay ahead in a competitive market.

 

Partner with Livestay

If you own a high-spec luxury property in the UK, Livestay can help unlock its full potential. Our expert team specialises in maximising revenue while ensuring guests enjoy unforgettable stays.

By embracing the short-term rental model with a focus on quality, transparency, and innovation, property owners can achieve sustainable success in this ever-evolving industry.

Contact us today to learn more!