Short‑term Lettings Across Major Cities: Evolving Regulation And Ongoing Demand

Over the last decade, we have seen significant growth globally in the short-term lettings sector, particularly in popular holiday destinations. What may have begun as a side-stream of income for home/property owners has since developed into a lucrative business model. Property owners (many with modest portfolios) are collectively seen to be major competitors of hotel owners, who are subject to higher costs, stricter regulatory obligations and tax burdens. The rising use of apps and success of the 'sharing economy' has led to brands like Airbnb becoming almost synonymous to this category of property lettings and phrases like 'Airbnb tycoons'¹ have emerged.

In addition to competition for hotel owners, there are also growing pressures of housing supply in many countries. According to the Office for National Statistics report in November 2025, there continues to be an increase in guest nights spent in short-term lets in the UK year-on-year (with Edinburgh being the only local authority