This Just Killed Airbnb in the UK 

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Yeah I mean that’s kinda what happens when you charge £90 a night for a single room in December in Cornwall. All these owners saying “come on, guys! I’ve reduced it by £10, it’s a good deal”…. “Right, but it’s still £90 for a drizzly Tuesday in Cornwall….” Airbnb used to be a great option, back when it was people with a spare annex going and charging cheap prices. Now, as with everything in the UK, it’s been corporatised to the hilt. The problem is, unlike the USA, we’re no good at it… we just charge excessive prices and then whine when no one’s buying….

Property "investment" has been one of the key problems in the UK for decades. It started with being able to buy your council house, which are now largely owned by landlords who are renting them out, to the same people, at a far higher rate than the councils would have. I think these changes are good. Some investors won't be troubled (esp those without a mortgage), but for those that are, I hope it starts to provide affordable housing for local people. Maybe it'll even lead to a slow recovery of the many "ghost towns" we have in the most picturesque parts of the country.

The fact you could ever claim relief on mortgage interest of any kind was offensive when you can’t do the same on your family home. If anything your FIRST house should be deductible but nothing after that. Why we’ve ever incentivised people owning more than one house is beyond me. Property should not be an investment. Next step stop companies of any kind owning residential property.

*Hit 401k today. Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 24k in July 2024..*

Let’s hope that it leads to more available housing for those who need it. In the area I live affordable housing is virtually non existent, but there are plenty of empty properties that are Air BNB. Barcelona has the right idea, if we need affordable housing we need less Air BNB properties.

I have no sympathy for AirBnb property owners.

Looks like Airbnb just faced a huge setback in the UK. The new regulations are going to change everything for hosts and guests alike.

AirBNB screwed itself with stupid price increases. I travel around the UK all of the time and have stopped using Airbnb for at least the last 2 years. Owning property in the UK is a tax screw. Not worth having.

I've held 3 Berkshire Hathaway Class A shares since the mid-90s at around $17,000 each. Now, I'm selling some to buy growth stocks. With market volatility, should I reinvest in gold instead?

End of Airbnb, good. These are homes, not houses.

As a rent to renter, this is good news. Less competition and more deals.

This doesn't kill Airbnb, it attacks small investors. I suspect a large investor has lobbied for this change.

Airbnb killed itself for me, no matter where in the world. A 3 week booking on a completely misleading listing, where I had to leave after the first week, because I was getting literally sick in there. Their support would take days to reply or call back. In the end they didn't refund me one cent. I will sleep on the streets if necessary, but won't use Airbnb ever again in my life.

Anything that makes residential property less attractive to investors is a good thing. With less speculation there are more houses on the market for people that actually need to live in them.

Good, need before greed. Homes before profits.

the market for air bnb will be for those who don't have a mortgage on their other properties. Prices wont explode, as they are competitors to hotels and the the renters rights bill means that tenants only have to stay 2 months minimum anyway.

Airbnb has become a monster that is ruining the real estate market. When people take out loans or leverage themselves to buy properties with sole intention of renting them out through Airbnb, you know the situation is completely unhinge.

So... tax breaks are being cut and landlords will have to pay tax like everybody else. Got it.

Poor landlords. The real victims in this world

It is stupid to call them investor as the money doesn't produce anything and helping people

While this may be good for renters wanting to buy, it is terrible news for those not wanting or unable to purchase, as we are seeing swathes of landlords selling. In turn, this is driving up rents, so, depending on the region, but especially London, only the richest tenants will be able to afford the new rents. Those on low incomes or benefits will find either no properties are available or the rents will be outside their price bracket. A solution is to build more homes, but developers used to sell around 30% to landlords, so they are likely to build fewer homes. Add to this that net migration is 750,000 with building last year at 189,000 and it is not hard to see what is driving house prices. The Government has committed to building 1.5m homes over 5 years, but we do not have hordes of qualified builders sitting idle at a time when our little cherubs are being told to get university debt to end up with an average income below the average tradesman. Even if we had the workforce, increasing construction by 2-3 times will drive up the cost of materials.

I bought my first unit for 77k. It brings in on average £2098 a month. A great investment no matter how they play me with the tax. My current is a 3 bed, 3 bath, 3 kitchen "HMO" with another airbnb on the back that brings in £4850 combined a month.

I got out of being a landlord years ago when I could no longer convince myself it wasn’t morally wrong. Create or help. If you’re not doing one of those two things and are still making money, you’re making things worse for the rest of us.

This is just speculation but surely hotel prices will also increase with the reduction of AirBnBs? If people going on a staycation or workers on business trips aren't able to rent appartments/homes to stay they will have to look to hotels. With the reduction of supply demand for those will rise and therefore prices? Once again just hurting those in the country.

It's immoral to be renting out homes you yourself don't own outright, and It's even worse when you can claim a tax break on interest paid for by your tennants. The practice of letting out mortgaged properties should be made illegal, prices have already been distorted enough.

Houses are for living in - they should never be a business

The residents of Cornwall salute you.

"Ian" doesn't own an AirBnB, he owns a furnished holiday let. We have been operating FHL for over 12 years and AirBnB is just one route to market. Its not easy money running a FHL well. We now have 3x the number of holiday rentals in our location. FHL have much more regulation coming and have lots of costs that some FHL properties seem to ignore, for example you musty pay for commercial waste even if you are on council tax. Our FHL business is our only income, we do all of the marketing, cleaning and maintenance ourselves. In some ways I welcome the regulation to level the playing field but I find it very frustrating that we will be seen as an investor rather than a business when we are very hands on. If we look at all of the work we do it probably goes past the 20 hours a week level so we hope we may still be seen as a business in some way. PASC are working hard to lobby parlement for some concessions for those of us that do run the business rather than handing over to a managemnt company.

Isn't this issue fixed through an Limited company. Then you get taxed fairly once again? (Getting taxed on profits you haven't made is ridiculous - and a great way to try and bankrupt small business owners) 😔

Rooms on Airbnb will sky rocket in price

Governments haven’t got a clue. Only way round it is do it as a Ltd company. But only the better off will be able to do that. The core of single property landlords wont be able to do this. So the buy to rent big boys will be the bulk. I still fail to see why private landlords are treated different from every other type of business! 😢

It will mean that the genuinely good hosts on Airbnb will rise to the top... the faceless ones who dont care much for guest experience, and are there ONLY to profit will fall off. I stayed in an incredible AirBnB recently in east Greenwich.... a guesthouse, where the host really cared and made an effort even though we never met because he was working away. This is actually very rare now. So hoping this change will reward the good hosts

Great, they should sell. Let locals buy a home.

So rents have gone up 40% to compensate the landlord for loss of income, Landlord happy, Renter unhappy, Tax man happy, got it.

Could you do a post on how to calculate yr tax return as a lower rate tax payer with interest only buy 2 lets? I’m still confused but I think I’m allowed 20% off my interest only mortgage payments. Is that right?

Prices might come down, but rents will go up, not go down as well?

We've just closed a very successful BnB due to competition of air BnB's since lockdown, these dont charge VAT, also in cheaper area's around town, ive seen many who dont really understand the trade and now realising it's hard work and constant, but the world changes and do hope things get back to previous years where BnB's and Hotels are back to busy and provide a better product.

Because of these Investors I was never able to buy my First Property, so GREAT news!! 👍👍👍👍👍👍👍👍

I want to turn my house into air bnb but I own it outright and its not in a tourist area. More for workers or medium stay. Just got out of long term letting on another property and don't fancy going down that road again.

As a resident in a city with a lot of air bnb I kind of hope they go away they have attracted profit chasing landlords some of whom are not good neighbours for residents they will likely chase the student let or HMO market. I suspect many landlords will just form limited companies and carry on in whatever sector yields the best profit its a sector that local councils should have a say in the residential use mix in an area as in our city there is a large culturally diverse student population, high rents, high house prices and local young workers find it very difficult to remain.

It's all too easy to blame long term and short term rentals for housing shortages. How about looking at the ruling classes for their poor administration. Cornwall was dead and buried as their coastal towns and property were decaying, now that people have bought renovated (local trades) every body now wants a slice. The influx of people has seen a rise in employment with great hospitality etc., if we are not careful these locations will return to type.

Poor Ian and his tax bill🤣🤣🤣 Maybe he'll eventually realise housing is for homes and not for profiteering. Probably not though hey...

No it doesn't mean the end of AirBnBs. Most AirBnBs are additional rooms in the owner's residential property. Corporate and cash buyers will still buy properties in tourist hotspots for short term let. Travel to Europe is about to get more troublesome with ETIAS and biometric passports. The purchase of short term let properties may even grow in UK tourist hotspots.

Is it still OK within a company?

The whole point is to increase housing supply for young people therefore reducing selling prices. Good.

Never should have subtracted mortgage payment from taxable profit, the value of the house you're purchasing is part of the profit

What if the properties are in a Ltd company?

Only true if property is owned by individual, if property is owned by the company, then they never had any issues with tax... So why this isn't an issue for airbnb, but only issue for Ians? Well that because Ians are minority in airbnb, most of "superhosts" are companies or agencies, or individuals who runs it as a business. Meaning they have lost nothing and airbnb won't care either way, the property is owned by business and business can write-off any expenses from their tax. This is typical closure for loophole that is not really an issue, the issue is the sort of "industrial" landlords, not individuals who have second home and rent it out, but the ones that have 80 properties and those that have 80 properties they always run the business as a business, so for them all this makes no difference.

Don’t you think Milliband we kill the long term rental with his EPC requirements . We have my in-laws home rented out but it’s rated at E and would cost £15-20 k to bring up to the C level . The tenant is long term and content with current situation but we would have to sell !

But airbnb is still.morw profitable the long term rent so cant see many people switching

Nice to see the tax man coming for the parasite class.

airbnb isn't just for holidayers... this is a one dimensional view of the situation

What would this mean if you put the property in a LTD?

Radical idea. Investors pool together and actually invest in purpose built holiday accomodations

UK homes for UK people. Sounds great.

My heart bleeds.

Shit, I didn’t know I could claim tax relief on my air b&b property mortgage, I only stared to rent the property out because I rarely get to go there. It looks like I have a claim to make for the last few years. Still make good money on it anyway even paying the tax.

There's that "Could" again. "Could" is a dangerous word. If AirBnB was to collapse tomorrow it COULD lead to the price of corned beef rocketing... GET A PROPER JOB

Not if you take cash mate

Great to see it

Oh dear,how sad,never mind.

I’m a sociopath like Ian. I see nothing wrong with distorting other people’s future for a fast buck. 🎉

About time too, bad for consumers business

Labour just by mere talk is killing a lot of businesses. Ok now Asda staff can live in the £1m houses! @ £2500/month!

So i wont have anywhere to stay now when i go away on a holiday, i cannot stay in a hotel as they are full of illegal immigrants and now i wont have an airbmb to stay in.

The people will have to go to work and he a slave like the rest of us 😂👍 no more making money from peoples misery by investing in second homes! No one's gonna want to rent a home long term next to the beach when there no jobs to go to! This summer Cornwall was dead anyway! So it will be interesting for Cornwall maybe the locals can get on the property ladder and buy a home on pasty wages 🤔 that would be good for Cornwall so the community comes back

Usual click bait. I don’t see Airbnb ‘dying’ anytime soon.

Yea stopped using airbnb since around covid, premier inn much safer bet

What about double council tax?

What's the point in keeping money in the UK anymore? Just seems the forecast for the next few years things are going to get worse for people with money to invest

Good. Air BnB is ****

F the tax man

Not good enough. AirBnB needs to be prohibited in the UK. End of.

Cutting out the middle class

Turn the page move on and leave

The UK does not have a competitive offering for ambitious young people. I’m leaving.

For 'investor' read 'house thief'

Wow!

Good. Labour are thinking about the working class.More homes for living is good.

nice

good :)

Rodriguez Steven Perez Kevin Wilson Lisa

'Investor', parasite more like

Martin Shirley Jackson Amy Johnson Cynthia

I bought my first unit for 77k. It brings in on average £2098 a month. A great investment no matter how they play me with the tax. My current is a 3 bed, 3 bath, 3 kitchen "HMO" with another airbnb on the back that brings in £4850 combined a month.