"Let homeowners make their homes work for them"
Accommodation platform Airbnb has urged banks and building societies to update mortgage policies that prevent borrowers from occasionally sharing their property on these platforms to boost their income.
The company that operates an online marketplace for short-term homestays said homeowners must be given some leeway in looking for additional ways to earn income as mortgage rates continue to increase and fears about affording the rising costs of living grow.
Research commissioned by Airbnb revealed that over three quarters, or 77%, of homeowners are thinking about ways to supplement their income to combat the rise in mortgage rates, while nearly half, or 47%, would list their home on a short-term lettings platform in order to cover the increase in monthly payments.
Related to this, a survey of 2,000 UK adults by specialist holiday let mortgage lender Together has found that 24% of Brits are considering becoming a holiday let owner, a figure which rises to 51% of 18- to 34-year-olds.
The biggest motivator is potential profits, with nearly half, or 48%, saying they would consider short-term holiday letting as a way of earning extra money. This is even more important to those aged 55 and over, with almost two in three, or 65%, driven by the potential to earn additional income.
According to another survey conducted last year, over a third of UK hosts said they use the income from Airbnb to afford the rising costs of living.
However, 40% of borrowers said their mortgage provider won’t allow them to rent out their home or a spare room on such platforms like Airbnb.
“With mortgage rates and inflation continuing to climb in the UK, British families are turning to hosting on Airbnb as a tool to afford rising living costs,” Amanda Cupples, general manager for Northern Europe at Airbnb, said. “In normal times, this activity, which for most hosts would be for no more than a couple of days a month, offers flexibility and a source of additional income. But in the current climate, it could be a lifeline.
“We want to work with lenders and show them the benefits of home sharing so they can update their policies and let homeowners make their homes work for them.”
Marc Goldberg, commercial chief executive at Together, added that staycations have been in extreme demand, with bookings reaching all-time highs.
“Whether families wish to stay in the UK to control costs, avoid getting caught up in potential airport travel issues, or just want to experience the UK’s beautiful countryside, there are lots of new holiday letting opportunities cropping up as more people recognise the income benefits of becoming a full or part-time host,” he said.
Goldberg pointed out that while the rewards are plenty, there are some considerations for anyone who considers holiday letting.
“Mortgage applications for holiday let properties are not always available from mainstream lenders, so potential holiday let owners must also talk to specialist lenders, who could help to turn their ambitions of becoming a host into a reality,” he said.
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