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….
Even putting weather aside, compared with rest of Europe in UK Airbnb is like 30-50% more expensive on average, yet quality often worse than cheaper place in Spain, France, Italy etc Sometimes prices are ridiculous, Ive seen that many times as well, 80-100quid for one room sadly does not make it inviting at all.
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 target demographic, 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.
Affordable housing? All it means is small time landlords will sell at a reduced price to cut losses and corporations and the wealthy will swoop in. There’s a lot of student flats coming on the market here, who’s buying them? Not students…
@@cocosheffield79 students wouldn't be buying student flats anyway? They rent them and then move out. As in my original comment, it's a hope that it will provide more affordable housing. It's not a given.
as a property owner, former landlord and tax curmudgeon, I actually don't have anything against this. It's a bit wild to have a family neighborhood essentially turned into a hotel complex, with no community, services getting used at max capacity and then British families are unable to buy quality homes and forced to live in dreary sh1thole towns, never aware of how beautiful their own country is!
@@illegalopinions4082There are almost £2.5m Uk homes taken up by second home owners from the UK and abroad. Although far from fixing the problem it would help. I support your point though and the sooner a fix is found for the “unnatural” population growth the better. There is also many towns and cities full of derelict homes that does not help either.
@@illegalopinions4082 Current UK population is about 68 million. It hasn't been about 48 million since the early 1950s. So, sure, it's risen by 20-odd million, but over a heck of a long time. And what's the significance of the number 20 million? If you're prepared to go for the long term, why not say that it's risen by 30 million (since about 1900) or 40 million (since about 1860)?
@@beeble2003 Because up until the 1950's that growth was organic. It wasn't caused by a basically open door border policy artificially inflating the numbers. Issues with lack of housing and public services not being able to keep up with needs occur very sharply after that point. An almost 50% increase over the last 70 years is a cause for concern no matter where you approach the issue from.
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.
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.
@@adamsowa5927 Spot on.. Banks and large Landlord companies will buy all the stock and where there was once competition due to the small buy to let owners this will disappear due to them exiting the market . people saying this will realign house prices & rent prices are in for a shock..
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.
Yes absolutely I agree but I think they maybe pricing themselves out of income.We have rented a property one year and the following year the price had risen so much we looked elsewhere.Maybe Airbnb owners do not need repeat custom.
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.
@@carlyndolphin I’m not saying there shouldn’t be rentals, there are many people that need to rent. But for most people that rent, they’d prefer to own if they could. Of course there should be rental properties in the market, but not as many as there are today. There are many other use cases for rental, like immigrants, students, temporary (like you).
Not really there are millions and several generations who don't save and won't ever have a deposit.or own a house. This is where quality landlords are needed. Many small landlords = less professional and lower quality of housing.
Not in all cases. Our rental properties have a planning restriction for holiday use only so we can't sell to a local family or rent despite them being in the centre of a small village.
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.
@KamilSkalny - Airbnb is like any other bubble that attracts non-professionals to boost the promotor's price and eventually collapses, only with real estate the punters have to get seriously into mortgage debt as well The UK property market is a never-ending story of government interference to distorts values via immigration, HB, rent control, interest rates, tax and a depreciating currency that makes property appear to be a safe hard asset although in reality the government can still loot it at will
We have no sympathy for you either, this video is over hyping the effect this will have. There will be a few over leveraged people who bought in their personal name selling, everyone else will be largely unaffected
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.
This all started when the Sarah Beenies of TV got us all buying run down cottages for 50k. painting them magnolia, chuck in a cheap B&Q kitchen/bathroom then banging them back on the market for 200k. It got ridiculous and greedy and we ruined the housing market for our own kids.
I read that the government is limiting short-term rentals in certain areas to tackle housing shortages. It's understandable, but it’s going to hurt a lot of small hosts.
Absolutely! Many people relied on Airbnb for extra income. This could lead to more vacancies in the rental market since landlords might revert to long-term leases.
True, but it might also push some tourists towards hotels, which could be more expensive. Not everyone can afford to stay in traditional accommodations
Yeah, it's a complex issue. I hope there’s a way to find a middle ground that benefits both locals and visitors without killing off the short-term rental market entirely.
Air BnB is AWFUL. 1. Their 'additional charges' are unregulated and far too high. 2. They also charge the property owner, so they get fees from both parties. This is how they were on the stock exchange so quickly. 3. Nightly rates are as much as a professional, full time B&B or guest house, but ABB properties don't have nearly the same standards like, Meet & Greet, on site Owner or Manager, Breakfast, En suite, clean rooms, proper heating or cooling. The UK has had holiday lets for years before ABB came on the market.
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.
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.
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.
@@philsmith5973 Clothes before profit, food on the plate before profit. Transport before profit. I think your quote can be said for all things. Landlords don’t run a charity, houses cost money and a lot of it, if you doubt it, go to Rightmove and buy one.
How about those in "need" get off their fat arses and go through the sacrifices the rest of us did to get our first property? Too many people want everything on a plate
@@graemejones9707 No lies detected. I was with a young lad over the weekend and he said he will like to be like me, I told him it took me 20 years to get here. 20 years of mistakes and sacrifices.
We've got some great businesses that actually do something productive, instead of rent seeking property ownership that does nothing to improve the UK. Invest in something more constructive instead.
Indeed. Everyone thinks this is great news when the reality is that it only kills off the small investors. The large investor will still hike up their prices accordingly, keeping local properties even further out of arms reach.
It’s not only AirBNB. Just BnB prices are insane. We were in South Wales in April, with awful weather, and a BnB wanted, for a small room in a tiny village ( albeit by the sea) over £1200 pounds for a week (6 nights). For that you can get a full inclusive in Cyprus for two, and have more than enough left for another short holiday! As for hotels, prices have also gone through the roof recently. Not sure why. Even in non tourist places.
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.
Being allowed to take out a mortgage to buy a property solely for the purpose of AirBnB rental rather than living there should never have been a thing. Residential Homes should never have been viewed as investment. It’s just greed. The rule should be one house, one mortgage, one salary.
I've got a couple of holiday lets in the Philippines and I pay 8% tax and that's it. I rent primarily to the Americans, don't use Airbnb, have a 90% occupancy rate and built both 4-5 bed houses (sleeps 6-10) for less than GB£50k. It does help that my wife is a Philippines citizen, I'm from the UK, and we bought the land from her sister a little cheaper (but not much), we also employ family to handle change overs and maintenance reducing our expenses. There has been no depreciation, bills are so much cheaper than the UK and the life out there is great even on what we in the West would consider a low income, less than £1000/month, so we're gonna retire there. We can rent a 3 bed house on a gated community close to the city, Tarlac, for about GB£120/month and can keep both holiday lets so why do people bother with £250k houses and a 30 year mortgage here in the UK where we get taxed to death. You could have 5-6 times the rental/holiday let income if you went abroad and a fraction of the tax burden and because you bring jobs and money to local businesses they think you're great.....
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
This was enevitable - Airbnb has been hurting housing markets globally for years. Airbnb in the UK is diminishing because of the cost! If people returned to the 'bnb' model and stopped trying to make way more than they should, they would also have more business. Hotels are now able to compete. it says a lot.
We are starting to see lots more houses for sale and to rent here in Cornwall. It’s a big relief. Anyone that thinks local people should struggle for housing so that they can make money isn’t right in the head!
A very good point. Airbnb like everything has pros and cons. Rural areas where nobody wants to live but lots of people want to vacation for the picturesque views of country or sea are great for airbnb properties. Nobody will want to rent there since it is too isolated and without jobs or access to shopping etc. However, if properties are inviting tourists for short holidays there to relax, there is reason to set up businesses such as restaurants which create job opportunities. Of course this will attract people who need to live nearby for work, a bit of a cycle, but could be effectively managed if kept in balance with thresholds and regulations i.e. airbnb price thresholds and the local council managing numbers of properties available for locals who will work there vs properties that have a license to rent to airbnb tourists.
Like everything, Airbnb has pros and cons. Rural areas with countryside or sea front locations where nobody wants to live because they are isolated and have few jobs and businesses, but where lots of people want to vacation for the picturesque views of country or sea are great for airbnb properties. Nobody wants to rent longterm there since it is too isolated and without jobs or access to shopping etc. However, if properties are inviting tourists for short holidays there to relax and get away from the city, there is reason to set up businesses such as restaurants which create job opportunities. Of course this will attract people who need to live nearby for work, a bit of a cycle, but could be effectively managed if kept in balance with thresholds and regulations i.e. airbnb price thresholds and the local council managing numbers of properties available for locals who will work there vs properties that have a license to rent to airbnb tourists. I love airbnb and I don't blame any property owners who choose to earn money from it, however when it comes to properties as an invest, since there is only a limited number of physical property that can exist in any one area, I do understand that they should house residents and not all disrupt society by becoming disruptive hotel competitors who disturb neighbours and locals whilst locals can't afford to live anywhere due to misuse of these properties causing housing market prices to inflate beyond reason. It's just not sustainable without proper regulation. However, regulation attempts are in process and this means everyone can win a little. I wouldn't want airbnb to die out because it gives people once in a lifetime opportunities to stay in amazing properties for a short stay which they might never have the opportunity to do so otherwise, some very unique properties which are fantastic! It just needs control, and perhaps licensing from local councils to ensure properties that are in residential areas aren't disturbing locals nor being stolen from them as a prospective home if more suitable to serve as one.
The tax implications were only for the interest not any repayment element of the mortgage so its not exactly paying off any of the capital just the interest. You could argue that the value of the property may go up but that is also taxed under capital gains. I actually don't think its unreasonable to do what they did reducing the relief to the base rate of 20%, not exactly fair to give more benefit to someone who is earning enough to be paying 40 or 45% on other income.
@@seabreeze4559 you only pay property tax when you purchase a property (stamp duty) and not sell. You pay council tax (rates) whether you own or rent so it's irrelevant.
If Ian wants to run a business, then set up a company rather than fiddle it through personal taxation. So the budget change is +2% extra stamp duty on second homes - this is because people need homes to live in as a priority over Airbnb type private profit - grow up and pay your taxes
I would never own or rent a short term rental property. I live in the USA and the legal liabilities are just to much of a risk. If you own the property someone could do tens of thousands in damages just within a few hours which could take a year to get everything fixed. Then as a renter the owner could clam you did damages that preexisted and sue you. Since you are not local its really hard for you to show up to court to defend your self.
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.
Private landlordism should never have been legal. Real estate should never been a viable, profitable "investment". Only housing associations and local authorities should be allowed to let. 10s of 000s of new Council Houses need to be built and Right to Buy abolished.
This is all good news to me, add in the cost of council holiday let licences and council tax surcharges and we might just see a good proportion of these "properties" reverting to "homes" and there being enough of a population to service the local economy.
The missing data point here is the incoming CGT rates that will make selling for long term asset holders unattractive. Expect some further clever loopholing...
Good. I’m glad airbnb is going down. This was the trap though. Get everyone using the accommodation portal, get them dependent and then bring in loads of regulations. Keep independent people and only charge cash for your accommodation.
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) 😔
If you have properties in your own name then sell them to your ltd company you get hit with huge capital gains tax which outweighs the pros of moving it into ltd
@@OperationAndrewDocumentaries but that’s the crux really. There are a lot of Airbnb operators that don’t pay tax at all and are fleecing UK plc of millions. So they’ll avoid any sort of move towards making their ‘business’ official.
Mortgage costs when letting shouldn't be considered a business expense for taxation purposes. In the end you still get a property which appreciates in value; getting excluded from tax requirements on top of that is ludicrous. Meanwhile you have tons of people in this country completely incapable of buying a house, while a few people hoard them all and write off a huge portion of their mortgage on their fifth house from tax as a "business expense".
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?
No…if you have a standard buy to let personally, you have to pay tax on your entire income, mortgage interest is not deductible. So if you earn 12k per year on rent, you have to pay 20% tax on the 12k you can only deduct any repair costs if any
You’re wrong you get a 20% deduction on mortgage interest meaning if you are a lower tax rate payer then effectively you still pay no tax on the mortgage interest. It’s only higher rate tax payers that are affected. Just google it it’s all out there to read or get an accountant and save yourself the hassle
A lot of people in the comments seem to be saying Airbnb in the UK is expensive. Apart from the obvious reason of high-demand there's one simple reason for this that accounts for a great deal of those steep rates. There's no good alternatives.. The so-called budget brand commercial chain hotels, Travel Lodge, Holiday Inn and Premier Inn are all ridiculously expensive. Yea they advertise some good rates like £29/night but have you ever tried to book one? Last time I stayed away for work it was £159 for a night in Premier Inn or I could rent a whole flat on Airbnb for less. Easy choice I think.
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.
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.
Someone crossed the road from me is originally from Angola, moved from Portugal for better money, and asks us "How do we get more money from the government", She got priority because she had kids than any British person and mistreats her daughter like a SLAVE. Banning nor reducing Airbnb properties won't solve ANYTHING until the immigration issue is sorted out.
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 !
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.
@@crowningglory6654because when all is said and done I’m still just exploiting my privileged position to extract money from someone with less means that given the choice would rather not be renting. I’m also diminishing supply forcing up prices and exacerbating the problem of housing affordability. You can go through whatever mental gymnastics you like, its a robber baron with an acceptable face
This is terrible for locals. It would be excellent for people running migrant hotels. Not many people want to live full time in costal towns but they are great for housing migrants guaranteed income from the government that's the real opportunity from this policy.
"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.
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
American. No airbnbs NOT better run here!!! Scams, unreasonable demands/rules, nightmares full on! Causes of homelessness actually due to raised and often exorbitant prices for your stay, the goober before you didn’t clean properly, IF at all, no one IN the city to check or supervise or enforce. Every one of my friends who’ve done it has been charged despite cleaning-one was an ex maid😱🤷♀️. Personally, because I was IN the hospitality ind 40+yrs, so my idea of vacation is SERVICE!!! I’m layin on my ass or off sightseeing! Mind you, I did get spoiled because I worked 4 and 5 star resorts. The FOOD! Also a factor, people in neighborhoods wind up hating them and you, even if you’re decent nonpartyers! Resentments and unwelcoming vibes are no fun! Just a few facts from across the way, and an opinion.🙏🏻🧐🤷♀️🙃
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.
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
👍🏻 Link to free tools: bit.ly/48aeN30
🖥 Link to our website: bit.ly/3BFhXj4
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….
I think a bit of wee just came out. 😂😂😂
I think a bit of wee just came out. 😂😂😂
Even putting weather aside, compared with rest of Europe in UK Airbnb is like 30-50% more expensive on average, yet quality often worse than cheaper place in Spain, France, Italy etc
Sometimes prices are ridiculous, Ive seen that many times as well, 80-100quid for one room sadly does not make it inviting at all.
Totally. Airbnb is so shit I don't even look on it. EVER. Hotels are always cheaper.
1 property in Cornwall charging 2k for a week. 2 rooms 😂 rather a 2 weeks in koh samui thanks. Guaranteed weather and cheaper
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 target demographic, 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.
yes I agree, it's a good thing to make houses affordable again.
Affordable housing? All it means is small time landlords will sell at a reduced price to cut losses and corporations and the wealthy will swoop in. There’s a lot of student flats coming on the market here, who’s buying them? Not students…
@@cocosheffield79 students wouldn't be buying student flats anyway? They rent them and then move out.
As in my original comment, it's a hope that it will provide more affordable housing. It's not a given.
The people that made the huge profit on council houses are the ones that bought them for a massive discount, then sold them and moved on!
- Some investors won't be troubled.
Which ones?
as a property owner, former landlord and tax curmudgeon, I actually don't have anything against this.
It's a bit wild to have a family neighborhood essentially turned into a hotel complex, with no community, services getting used at max capacity and then British families are unable to buy quality homes and forced to live in dreary sh1thole towns, never aware of how beautiful their own country is!
British families can't find homes because the population has risen by 20 odd million. Having second homes really isn't the issue.
@@illegalopinions4082There are almost £2.5m Uk homes taken up by second home owners from the UK and abroad. Although far from fixing the problem it would help. I support your point though and the sooner a fix is found for the “unnatural” population growth the better. There is also many towns and cities full of derelict homes that does not help either.
@@illegalopinions4082 Current UK population is about 68 million. It hasn't been about 48 million since the early 1950s. So, sure, it's risen by 20-odd million, but over a heck of a long time. And what's the significance of the number 20 million? If you're prepared to go for the long term, why not say that it's risen by 30 million (since about 1900) or 40 million (since about 1860)?
@@beeble2003 Because up until the 1950's that growth was organic. It wasn't caused by a basically open door border policy artificially inflating the numbers. Issues with lack of housing and public services not being able to keep up with needs occur very sharply after that point. An almost 50% increase over the last 70 years is a cause for concern no matter where you approach the issue from.
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.
You still can as a ltd company. Why do you think banks and pension funds are now allowed to and are doing so again!
@@shaunsprogress exactly, it’s shocking 👍🏻
Well said. Labour should take the opportunity they have with the large majority. instead of jailing people for tweets.
@@Paul-dorsetuk Large majority? I think they had the weakest election win on record.
@@shaunsprogress seats in the house of commons for voting through their policies.
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.
It will not lead to affordable housing. It will allow banks to buy even more housing stock at a discount and charge even higher rates.
@@adamsowa5927 Spot on.. Banks and large Landlord companies will buy all the stock and where there was once competition due to the small buy to let owners this will disappear due to them exiting the market . people saying this will realign house prices & rent prices are in for a shock..
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.
Stay at Haven ..not as cool but priced correctly for short stays.
AirBNB don't set the prices, the hosts do
Yes absolutely I agree but I think they maybe pricing themselves out of income.We have rented a property one year and the following year the price had risen so much we looked elsewhere.Maybe Airbnb owners do not need repeat custom.
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.
I work all around the country as part of my job. Most contracts last 1 year so I need to flexibility to rent places. You’re too narrowed minded
@@carlyndolphin I’m not saying there shouldn’t be rentals, there are many people that need to rent. But for most people that rent, they’d prefer to own if they could. Of course there should be rental properties in the market, but not as many as there are today. There are many other use cases for rental, like immigrants, students, temporary (like you).
Not really there are millions and several generations who don't save and won't ever have a deposit.or own a house. This is where quality landlords are needed. Many small landlords = less professional and lower quality of housing.
We will see the end of the "small" landlord and rise of the mega landlord.
None of this is for the benefit of mere mortals.
End of Airbnb, good. These are homes, not houses.
This absolutely will not be the end it’s a small tax increase for people who bought in their own name everyone else…. Business as usual
What people do with their private property is their own business. If you want a say, buy a property
@@discostu2 I guarantee it'll be clamped down on more than this. This is the first step. Good luck.
There is a demand for these homes. Not everyone wants a hotel like you
Not in all cases. Our rental properties have a planning restriction for holiday use only so we can't sell to a local family or rent despite them being in the centre of a small village.
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.
@KamilSkalny - Airbnb is like any other bubble that attracts non-professionals to boost the promotor's price and eventually collapses, only with real estate the punters have to get seriously into mortgage debt as well
The UK property market is a never-ending story of government interference to distorts values via immigration, HB, rent control, interest rates, tax and a depreciating currency that makes property appear to be a safe hard asset although in reality the government can still loot it at will
I have no sympathy for AirBnb property owners.
We have no sympathy for you either, this video is over hyping the effect this will have. There will be a few over leveraged people who bought in their personal name selling, everyone else will be largely unaffected
@@discostu2you just have no sympathy
Share price doing just fine....
The Envy effect 😊
@@pataleno wrong, not everyone needs to accumulate material things to validate their life
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.
report to the environmental ppl?
Ah, remember the good old days when families bought houses to live in!
This all started when the Sarah Beenies of TV got us all buying run down cottages for 50k. painting them magnolia, chuck in a cheap B&Q kitchen/bathroom then banging them back on the market for 200k. It got ridiculous and greedy and we ruined the housing market for our own kids.
and now those kids cannot afford to have grandkids!
Greater Fool theory at its finest!
Because of these Investors I was never able to buy my First Property, so GREAT news!! 👍👍👍👍👍👍👍👍
It is stupid to call them investor as the money doesn't produce anything and helping people
Rent seeking economy.
speculators, we need to ban unearned income again
Looks like Airbnb just faced a huge setback in the UK. The new regulations are going to change everything for hosts and guests alike.
I read that the government is limiting short-term rentals in certain areas to tackle housing shortages. It's understandable, but it’s going to hurt a lot of small hosts.
Absolutely! Many people relied on Airbnb for extra income. This could lead to more vacancies in the rental market since landlords might revert to long-term leases.
On the flip side, this could mean more affordable housing options for locals. It’s a tough balance between tourism and housing needs.
True, but it might also push some tourists towards hotels, which could be more expensive. Not everyone can afford to stay in traditional accommodations
Yeah, it's a complex issue. I hope there’s a way to find a middle ground that benefits both locals and visitors without killing off the short-term rental market entirely.
So... tax breaks are being cut and landlords will have to pay tax like everybody else. Got it.
No, wrong. Everybody else running running a business receives loan interest as a tax break.
@@stevo728822 a business, not buying a potential personal asset. businesses are useful, unlike landlords.
As a rent to renter, this is good news. Less competition and more deals.
Air BnB is AWFUL. 1. Their 'additional charges' are unregulated and far too high. 2. They also charge the property owner, so they get fees from both parties. This is how they were on the stock exchange so quickly. 3. Nightly rates are as much as a professional, full time B&B or guest house, but ABB properties don't have nearly the same standards like, Meet & Greet, on site Owner or Manager, Breakfast, En suite, clean rooms, proper heating or cooling. The UK has had holiday lets for years before ABB came on the market.
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.
the council can fix it with national funds, as they always did. flippers are criminals.
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.
unearned income in general must be banned, the whole BTL scam needs to come down
all that does is allow those with the cash to buy outright to monopolise it though.
"It's immoral to be renting out homes you yourself don't own outright"
Why?
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.
Good, need before greed. Homes before profits.
Exactly 👍👏
@@philsmith5973 Clothes before profit, food on the plate before profit. Transport before profit.
I think your quote can be said for all things. Landlords don’t run a charity, houses cost money and a lot of it, if you doubt it, go to Rightmove and buy one.
Only problem is the very rich still profit. It's only the small landlord who wanted to retire before dying who are negatively affected
How about those in "need" get off their fat arses and go through the sacrifices the rest of us did to get our first property?
Too many people want everything on a plate
@@graemejones9707 No lies detected.
I was with a young lad over the weekend and he said he will like to be like me, I told him it took me 20 years to get here.
20 years of mistakes and sacrifices.
Absolutely no point in investing in UK for next 5 years+ I'm out
We've got some great businesses that actually do something productive, instead of rent seeking property ownership that does nothing to improve the UK. Invest in something more constructive instead.
This doesn't kill Airbnb, it attacks small investors. I suspect a large investor has lobbied for this change.
Indeed. Everyone thinks this is great news when the reality is that it only kills off the small investors. The large investor will still hike up their prices accordingly, keeping local properties even further out of arms reach.
Think the difference is that the larger investors will hold in a Ltd company.
Poor landlords. The real victims in this world
ah you mean the ones that look after their money?
@@gingerfish90 Most are bloody greedy.and rip off us ordinary people who cant afford a mortgage !!!
Exactly. I even shed a tear for them.
It’s not only AirBNB. Just BnB prices are insane. We were in South Wales in April, with awful weather, and a BnB wanted, for a small room in a tiny village ( albeit by the sea) over £1200 pounds for a week (6 nights). For that you can get a full inclusive in Cyprus for two, and have more than enough left for another short holiday! As for hotels, prices have also gone through the roof recently. Not sure why. Even in non tourist places.
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.
The whole point is to increase housing supply for young people therefore reducing selling prices. Good.
This is cursed. Landlords are a leech on society.
buy to let has gotta be banned it was historically yknow
Clear, concise and no waffle. Splendid.
Being allowed to take out a mortgage to buy a property solely for the purpose of AirBnB rental rather than living there should never have been a thing. Residential Homes should never have been viewed as investment. It’s just greed. The rule should be one house, one mortgage, one salary.
I've got a couple of holiday lets in the Philippines and I pay 8% tax and that's it. I rent primarily to the Americans, don't use Airbnb, have a 90% occupancy rate and built both 4-5 bed houses (sleeps 6-10) for less than GB£50k. It does help that my wife is a Philippines citizen, I'm from the UK, and we bought the land from her sister a little cheaper (but not much), we also employ family to handle change overs and maintenance reducing our expenses. There has been no depreciation, bills are so much cheaper than the UK and the life out there is great even on what we in the West would consider a low income, less than £1000/month, so we're gonna retire there. We can rent a 3 bed house on a gated community close to the city, Tarlac, for about GB£120/month and can keep both holiday lets so why do people bother with £250k houses and a 30 year mortgage here in the UK where we get taxed to death. You could have 5-6 times the rental/holiday let income if you went abroad and a fraction of the tax burden and because you bring jobs and money to local businesses they think you're great.....
That does sound great!
Makes perfect sense as you’re doing this in a country with lower foreign exchange and better tax regime.. way more value for money !
cuck
Great, they should sell. Let locals buy a home.
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
This was enevitable - Airbnb has been hurting housing markets globally for years. Airbnb in the UK is diminishing because of the cost! If people returned to the 'bnb' model and stopped trying to make way more than they should, they would also have more business. Hotels are now able to compete. it says a lot.
We are starting to see lots more houses for sale and to rent here in Cornwall. It’s a big relief. Anyone that thinks local people should struggle for housing so that they can make money isn’t right in the head!
A very good point. Airbnb like everything has pros and cons. Rural areas where nobody wants to live but lots of people want to vacation for the picturesque views of country or sea are great for airbnb properties. Nobody will want to rent there since it is too isolated and without jobs or access to shopping etc. However, if properties are inviting tourists for short holidays there to relax, there is reason to set up businesses such as restaurants which create job opportunities. Of course this will attract people who need to live nearby for work, a bit of a cycle, but could be effectively managed if kept in balance with thresholds and regulations i.e. airbnb price thresholds and the local council managing numbers of properties available for locals who will work there vs properties that have a license to rent to airbnb tourists.
Air B&B and 'buy to let' shouldn't be allowed whilst we have so many British born people unable to buy their first home.
It's mental that mortgage is tax-deductable. Glad they're closing this.
Like everything, Airbnb has pros and cons. Rural areas with countryside or sea front locations where nobody wants to live because they are isolated and have few jobs and businesses, but where lots of people want to vacation for the picturesque views of country or sea are great for airbnb properties. Nobody wants to rent longterm there since it is too isolated and without jobs or access to shopping etc. However, if properties are inviting tourists for short holidays there to relax and get away from the city, there is reason to set up businesses such as restaurants which create job opportunities. Of course this will attract people who need to live nearby for work, a bit of a cycle, but could be effectively managed if kept in balance with thresholds and regulations i.e. airbnb price thresholds and the local council managing numbers of properties available for locals who will work there vs properties that have a license to rent to airbnb tourists. I love airbnb and I don't blame any property owners who choose to earn money from it, however when it comes to properties as an invest, since there is only a limited number of physical property that can exist in any one area, I do understand that they should house residents and not all disrupt society by becoming disruptive hotel competitors who disturb neighbours and locals whilst locals can't afford to live anywhere due to misuse of these properties causing housing market prices to inflate beyond reason. It's just not sustainable without proper regulation. However, regulation attempts are in process and this means everyone can win a little. I wouldn't want airbnb to die out because it gives people once in a lifetime opportunities to stay in amazing properties for a short stay which they might never have the opportunity to do so otherwise, some very unique properties which are fantastic! It just needs control, and perhaps licensing from local councils to ensure properties that are in residential areas aren't disturbing locals nor being stolen from them as a prospective home if more suitable to serve as one.
Lets hope other countries follow this fantastic example. Couldn't have come at a better time. So many wasted empty houses.
Never should have subtracted mortgage payment from taxable profit, the value of the house you're purchasing is part of the profit
What?!! You can't get taxed on something that isn't realised; that's in the bracket of thought crimes.
The tax implications were only for the interest not any repayment element of the mortgage so its not exactly paying off any of the capital just the interest. You could argue that the value of the property may go up but that is also taxed under capital gains. I actually don't think its unreasonable to do what they did reducing the relief to the base rate of 20%, not exactly fair to give more benefit to someone who is earning enough to be paying 40 or 45% on other income.
which school did you go to ?
@@Mr_Sh1tcoin untrue, property tax is unrealised gain too
@@seabreeze4559 you only pay property tax when you purchase a property (stamp duty) and not sell. You pay council tax (rates) whether you own or rent so it's irrelevant.
You should be allowed to own one property only. And bloody live in it.
If Ian wants to run a business, then set up a company rather than fiddle it through personal taxation. So the budget change is +2% extra stamp duty on second homes - this is because people need homes to live in as a priority over Airbnb type private profit - grow up and pay your taxes
Poor Ian and his tax bill🤣🤣🤣 Maybe he'll eventually realise housing is for homes and not for profiteering. Probably not though hey...
Prices might come down, but rents will go up, not go down as well?
I’ve seen no dramatic change or drop in demand in central London , this may be a costal problem
Thanks for sharing God Bless
I would never own or rent a short term rental property. I live in the USA and the legal liabilities are just to much of a risk.
If you own the property someone could do tens of thousands in damages just within a few hours which could take a year to get everything fixed.
Then as a renter the owner could clam you did damages that preexisted and sue you. Since you are not local its really hard for you to show up to court to defend your self.
I won’t use airbnb, along with Expedia, Trip Advisor and Bookings. All of them are on the list.
Houses are for living in - they should never be a business
WFH??
Who ever said that? lol
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.
airbnb isn't just for holidayers... this is a one dimensional view of the situation
Great to see it
Rooms on Airbnb will sky rocket in price
Private landlordism should never have been legal. Real estate should never been a viable, profitable "investment". Only housing associations and local authorities should be allowed to let. 10s of 000s of new Council Houses need to be built and Right to Buy abolished.
right to buy is fine, renting should be the problem. can't keep people serfs for ever for the council can we?
Poor Ian. He might have to work now.
The residents of Cornwall salute you.
This is all good news to me, add in the cost of council holiday let licences and council tax surcharges and we might just see a good proportion of these "properties" reverting to "homes" and there being enough of a population to service the local economy.
But airbnb is still.morw profitable the long term rent so cant see many people switching
The missing data point here is the incoming CGT rates that will make selling for long term asset holders unattractive.
Expect some further clever loopholing...
Good. I’m glad airbnb is going down. This was the trap though. Get everyone using the accommodation portal, get them dependent and then bring in loads of regulations. Keep independent people and only charge cash for your accommodation.
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) 😔
If you have properties in your own name then sell them to your ltd company you get hit with huge capital gains tax which outweighs the pros of moving it into ltd
@@OperationAndrewDocumentaries but that’s the crux really. There are a lot of Airbnb operators that don’t pay tax at all and are fleecing UK plc of millions. So they’ll avoid any sort of move towards making their ‘business’ official.
Mortgage costs when letting shouldn't be considered a business expense for taxation purposes. In the end you still get a property which appreciates in value; getting excluded from tax requirements on top of that is ludicrous. Meanwhile you have tons of people in this country completely incapable of buying a house, while a few people hoard them all and write off a huge portion of their mortgage on their fifth house from tax as a "business expense".
@@mckendrick7672it's debt used to aquire the asset so the repayments should be deductible
@@Laped664don't forget you also need to pay stamp duty.
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?
No…if you have a standard buy to let personally, you have to pay tax on your entire income, mortgage interest is not deductible. So if you earn 12k per year on rent, you have to pay 20% tax on the 12k you can only deduct any repair costs if any
That’s wrong, you absolutely do get lower rate tax relief on mortgage interest
You’re wrong you get a 20% deduction on mortgage interest meaning if you are a lower tax rate payer then effectively you still pay no tax on the mortgage interest. It’s only higher rate tax payers that are affected. Just google it it’s all out there to read or get an accountant and save yourself the hassle
Anything that taxes greedy property investors to the hilt can only be good for people who want to buy a house to live in!
A lot of people in the comments seem to be saying Airbnb in the UK is expensive. Apart from the obvious reason of high-demand there's one simple reason for this that accounts for a great deal of those steep rates.
There's no good alternatives..
The so-called budget brand commercial chain hotels, Travel Lodge, Holiday Inn and Premier Inn are all ridiculously expensive. Yea they advertise some good rates like £29/night but have you ever tried to book one? Last time I stayed away for work it was £159 for a night in Premier Inn or I could rent a whole flat on Airbnb for less. Easy choice I think.
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.
Very good video.
good. Houses are for living in first. We ain't got enough.
Nice to see the tax man coming for the parasite class.
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.
For 'investor' read 'house thief'
I’m a sociopath like Ian. I see nothing wrong with distorting other people’s future for a fast buck. 🎉
you need to include northern island in your uk map in use in the video
UK homes for UK people. Sounds great.
Duh! Landlords are UK people.
And what about the 750k new arrivals per year.
Someone crossed the road from me is originally from Angola, moved from Portugal for better money, and asks us "How do we get more money from the government", She got priority because she had kids than any British person and mistreats her daughter like a SLAVE. Banning nor reducing Airbnb properties won't solve ANYTHING until the immigration issue is sorted out.
the holiday letting market in the Wales has gone really quiet in the second half of 2024; Not sure why.
Hotels cheaper than Airbnb in most places... not just the UK
About time AirBNB went bust.....
Not if you take cash mate
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 !
ABNB share price going up nicely
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.
Why couldn’t you just charge significantly less than the market rate to help?
@@crowningglory6654because when all is said and done I’m still just exploiting my privileged position to extract money from someone with less means that given the choice would rather not be renting. I’m also diminishing supply forcing up prices and exacerbating the problem of housing affordability. You can go through whatever mental gymnastics you like, its a robber baron with an acceptable face
it's called unearned income yep
@@Isaac-uk many of them live abroad so don't need to see their own evil, good on you chap
bring it on...
UK needs lower house prices and lower rents. People are going broke or cannot get a home.
This is terrible for locals.
It would be excellent for people running migrant hotels.
Not many people want to live full time in costal towns but they are great for housing migrants guaranteed income from the government that's the real opportunity from this policy.
"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.
😂
What about double council tax?
About time too, bad for consumers business
What would this mean if you put the property in a LTD?
Nothing much 😊
@@Neddie2k morgage would be a company expense I think.
@@stephenmackay9762 Companies pay taxes on Profits.
They have revenue, expenses and the difference, profit.
@2:15 it says under the headline who this will affect: corporates too
I wouldn't be getting my tax advice from a youtube comments section....
So rents have gone up 40% to compensate the landlord for loss of income, Landlord happy, Renter unhappy, Tax man happy, got it.
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
These apps are not good for anyone! Good rid-dans
American. No airbnbs NOT better run here!!! Scams, unreasonable demands/rules, nightmares full on! Causes of homelessness actually due to raised and often exorbitant prices for your stay, the goober before you didn’t clean properly, IF at all, no one IN the city to check or supervise or enforce. Every one of my friends who’ve done it has been charged despite cleaning-one was an ex maid😱🤷♀️. Personally, because I was IN the hospitality ind 40+yrs, so my idea of vacation is SERVICE!!! I’m layin on my ass or off sightseeing! Mind you, I did get spoiled because I worked 4 and 5 star resorts. The FOOD! Also a factor, people in neighborhoods wind up hating them and you, even if you’re decent nonpartyers! Resentments and unwelcoming vibes are no fun! Just a few facts from across the way, and an opinion.🙏🏻🧐🤷♀️🙃
My heart bleeds.
Oh dear,how sad,never mind.
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.
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
Thank god!!!!!!!!