An increasing number of Airbnb owners in Edinburgh are moving away from short-term letting in favour of traditional long-term tenancies as the overcrowded sector prepares for a fresh regulatory clampdown.
According to a report in The Times, the increase in popularity of Airbnb in cities such as Edinburgh has been blamed for fuelling property price growth, with many landlords taking advantage of the rather lucrative short-term let market.
But it would appear that some landlords with properties in some of Edinburgh’s most sought-after and tourist-friendly locations are now ditching short-term letting and looking for permanent tenants, owed in part to the fact that the Scottish government is openly considering the idea of introducing new regulation to clamp down on the sector in the city.
John Boyle, director of research and strategy at Rettie and Co, which manages both long-term and short-term lets for landlords, reports that fewer landlords are now opting for Airbnb.
He commented: “Short-term letting is probably not going to be as profitable and the government is looking at creating a level playing field - although that in itself is not an easy thing to do.
“It’s a fine balance. If you get the regulation wrong you damage the sector and that has implications for your tourism industry, and places like Edinburgh certainly enjoy positive effects from that.
“So it’s about regulating the sector so we don’t shut it down altogether but also don’t see a massive outflow from private residential tenancies, as cities like Edinburgh and Glasgow don’t have enough housing to pick up the slack.”