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Perhaps the most extreme restrictions already in place are in New York City. There, regulations include all short-term rentals registering with the Mayor’s Office, a maximum of two guests being able to stay, and the host must be able to prove they live in the property. Airbnb has been vocal against these measures, filing an unsuccessful lawsuit against the City of New York in June 2023.
Since the implementation of New York’s restrictions, a report by the Harvard Business Review highlighted how, despite their intentions, they had not actually reduced rent prices in the city.
I have seen the impact of Airbnb dominance first-hand. My grandparents are now one of only two permanent households in their village in Pembrokeshire, West Wales. When, out of curiosity, I looked last summer, I found that nine neighbouring properties were available to rent on Airbnb. In my lifetime I have seen this tiny coastal village lose its community and my grandparents become isolated.
But it’s not only small villages that are affected. Tenby, a popular tourist destination in Pembroke-shire, is one of the areas worst impacted by short-term lets. Alex, whose name has been changed, their partner and two small children were evicted from their home in spring 2022 as their landlord wished to turn the house into an Airbnb.
“It was absolute hell,” said Alex. “It still frustrates me that it’s a lovely house, quiet estate with families and elderly residents living there and he’s plonked an Airbnb in the middle, but hey it’s his house not mine.” The family found a new place to live where they are comfortable, but they still live in fear: “Every time I get an email from the letting agent I think ‘Oh no, we’re being turfed out again’!”
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The Renters’ Rights Act recently banned no-fault evictions in England, but doesn’t apply to Wales meaning what happened to Alex remains legal and could continue.
Current regulations in Wales stipulate that a property has to be available to be let for 252 days of the year and actually let for 182 days of the year to qualify for business rates, rather than the more expensive council tax premiums ap-plied to second homes and long-term empty properties. All visitor accommodation now also has to have a licence to operate. These regulations have been divisive, with some arguing they harm small businesses and others claiming they don’t go far enough. So far there is little evidence to show the regulations are improving housing access for local communities.
With Plaid Cymru now in power, there is potential for a new path ahead. In their manifesto, Plaid pledged to end no-fault evictions, create more social housing and “review the effectiveness of existing measures on second homes and holiday lets”.
There is no silver bullet solution to solving the housing crisis, in Wales or beyond. These measures will need to be combined with a reduction in the cost of living and increase in wages to allow people like Alex to be able to buy.
As the new Welsh government begins its term, it remains to be seen if their pledges for a fairer housing system will come to fruition.
Jemima Elliott is a journalist and campaigner
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