Airbnb surge is a 'recipe for homelessness' in Wales, new think tank report finds

A surge in holiday lets in Wales is having an adverse effect on private renters, fueling homelessness and displacing people from their local communities, according to new insights from a Welsh think tank.

As well as disrupting the housing markets for local buyers, the report from the Bevan Foundation suggests that the situation means renters are being forced from their homes as landlords rush to maximise profits.

The report reveals that the number of properties listed on one major lettings platform, Airbnb, has risen by 53% since 2018.

Gwynedd, Pembrokeshire and Powys have the largest number of properties listed.

The report illustrates how lucrative holiday lets can be by the returns they can expect compared with long-term lets offered by private landlords.

In all Welsh local authorities except Torfaen, it takes Airbnb hosts less than 10 weeks to earn the same annual income as landlords letting properties at Local Housing Allowance (LHA) rates.

On Anglesey, where Airbnb prices are among the highest, the figure is just 4.8 weeks.

Dr Steffan Evans of the Bevan Foundation said the situation was a recipe for homelessness.

In August, just 60 properties across the whole of Wales were offered at “affordable” rents – those at or below Housing Benefit or the housing element of Universal Credit (the LHA).

Dr Evans said: “With so few homes to rent for low income households, people are faced with an impossible choice: move out of their community, move into poor quality housing, try to plug the gap between their rent and their benefits by cutting back on food and heating, or become homeless.

“If we are to find a long-term solution to Wales’ housing crisis it is vital that work is undertaken to regulate the holiday let sector as well as the private rental sector.”

In August, the Welsh Government launched its Commission for Welsh-speaking Communities to explore problems caused by second homes and short-term holiday lets. The Bevan Foundation said this must also focus on the rental crisis as well as the lack of affordable homes for people to buy.

It stressed the rental crisis was not just affecting mainly Welsh-speaking communities such as Gwynedd and Anglesey.

Communities in Conwy and Powys are also likely to be affected, said the report, adding: “Any solutions proposed by the Commission should not be limited in their implementation to just those local authorities in Wales that are predominantly Welsh speaking.”

The report concluded: “The short-term holiday rental sector does bring several benefits to communities across Wales. For these benefits to maximised, it is vital that action is taken to ensure that a balance is struck between ensuring an adequate supply of accommodation for visitors and for people wishing to live in their communities.”