Airbnb Extends Long-Term Rental Services to the UK

Airbnb is expanding its long-term rental marketplace to the UK, starting with London. The service, already launched in 2022 in partnership with major rental firms like Greystar in the U.S., allows tenants to sublet their homes part-time to earn extra income.

The move is expected to provide new revenue streams for renters, especially those grappling with the cost-of-living crisis, while also satisfying landlord requirements and maintaining the properties as primary residences.  

What is the Reason Behind the Move?

The initiative is part of Airbnb’s response to criticism that short-term rentals have driven up housing costs and reduced availability in key markets. The rollout includes nearly 1,500 flats across three Greystar-owned properties in London. Tenants must sign agreements with their landlords outlining hosting rules and restrictions on how many nights properties can be rented out.

Airbnb is also in discussions with other landlords about expanding the service to additional UK properties to respond to the growing demand for flexible rental options. Its long-term rental programme requires tenants to share 10% to 25% of their subletting revenue with landlords. Airbnb says most tenancy agreements historically prohibit subletting, making it difficult for renters to become Airbnb hosts. This programme offers a solution that satisfies landlords, provided the properties remain primary homes.

The company is seeking to address growing backlash that platforms like Airbnb, Vrbo and Booking.com contribute to rising rents and housing shortages while providing renters, particularly those struggling with the cost-of-living crisis, a chance to offset expenses. This comes as cities worldwide, including popular destinations, impose stricter rules on vacation rentals to counteract their impact on housing markets.

Barcelona plans to phase out 10,000 Airbnb-style apartments, which make up 40% of visitor accommodations, by late 2028. Meanwhile, Lisbon has temporarily stopped issuing new short-term rental licenses. In New York, authorities now enforce a rule banning rentals of less than 30 days unless the host stays on-site, forcing Airbnb to cancel some bookings.

Airbnb has pushed back against such restrictions, particularly in Barcelona, arguing that insufficient housing development, not short-term rentals, is the main driver of high rents. Despite those headwinds, Airbnb continues to see growth. It reported an 8% jump in bookings for “nights and experiences” in the third quarter of 2024. However, the company predicts a dip in its core profit margin this quarter owing to higher spending on marketing and product development.

Conclusion

Airbnb is bringing its "Airbnb-friendly apartments" programme to London, letting tenants in 1,500 flats rent out their homes part-time and share 10–25% of the earnings with landlords. The programme is created with rental companies like Greystar.

As cities like Barcelona, Lisbon and New York crack down on short-term rentals, Airbnb is seeking to confront worries that short-term rentals worsen housing shortages and boost rents while providing renters with extra income.