Regional English cities are suffering from the rise of short-term rental services like Airbnb

The Northern Quarter, Manchester, 2014. Image: Getty.

The short-term rental market has ballooned in recent years. According to the Residential Landlords Association, Airbnb listings in ten UK cities increased by almost 200 per cent between 2015 and 2017. And while attention has mainly focused on the problems this is causing in big cities such as London, or tourist hotspots such as Barcelona and Berlin, communities in England’s regional cities are also feeling the effects.

The growth of short-term rentals is closely tied to the broader financialisation of housing – that is, changes in the housing and financial markets, which turn housing into a commodity. These changes have opened the door for new investors to buy and develop more and more units, which in turn increases the scarcity of housing, prompts landlords to raise rent, threatens community bonds and stretches neighbourhood services.

The short-term rental sector is made up of two different business models. Serviced apartments are typically run by a single business, which offer a hotel experience for visitors in many city centres. Landlords can also rent out rooms or entire properties through sharing economy platforms such as Airbnb. By providing this service, Airbnb has given people a new means to earn money on their homes – sometimes without having to follow all the laws that apply to renting.

Growing trends

In 2016, the Association of Serviced Apartment Providers found that 86 per cent of serviced apartment units in Manchester were occupied throughout the year. Alongside other regional cities such as Liverpool and Bristol, Manchester is a key target for serviced apartment operators.

To find out exactly how short-term rentals are affecting regional cities such as Manchester, I undertook research to collect data on 22 serviced apartment schemes, containing 1,198 units across central Manchester and neighbouring Salford during 2017. The average starting price for a night in a serviced apartment was £99, and owners made an average monthly income of £2,563 per unit. The financial rewards of investing in serviced apartments clearly outweigh the returns on long-term rentals for residents, which yield around £850 per month.

Getting trendy: street art and cycles in Manchester’s Northern Quarter. Image: Kylaborg/Flickr/creative commons.

To find out about Airbnb, I used a 2016 survey by sector analysts AirDNA, which showed a total of 310 units advertised on Airbnb within central Manchester, and more than 1,500 across the city region. They noted a 70 per cent annual growth in the sector from the previous year. The average price per night for an entire property is £143, with the highest being £1,251.


Across the city, my research identified 357 properties, which had been taken out of the long-term rental market up to 2016, with many more expected over coming years. Indeed, real estate company Colliers recently reported that in 2017 there were more than 4,000 units being used for short-term rentals, in a city struggling to build affordable housing.

The 2016 data from AirDNA revealed 177 hosts operating Airbnb properties in central Manchester: 59 owned multiple properties and accounted for 62 per cent of all listed units. It is likely that many of these hosts are people who own multiple properties, or who set up small enterprise to use housing in central Manchester as a business.

And there are concerns that those properties taken out of the long-term rental market may not be operating with any licensing or planning permissions. A report by the All-Party Parliamentary Group for Tourism, Leisure and the Hospitality Industry – a group of MPs from Labour, Conservative and Liberal Democrat parties, who meet to discuss issues in the industry – raised concerns that sharing economy platforms do not check if hosts comply with gas and fire safety regulations before they let out their properties.

Neighbourhoods on the frontline

Serviced apartments, concentrated in the Northern Quarter. Image: Jonathan Silver/author provided.

Short-term rentals are clustering at certain locations across Manchester, especially the popular Northern Quarter, which has more than 150 Airbnb units alongside over 500 serviced apartments. This rapid growth is putting strain on local services, small businesses and potentially residents, and there’s a real risk that the people who made the neighbourhood a popular destination for visitors will be pushed out, as the area becomes a magnet for “party lets”, with antisocial behaviour and littering.

With more than 650 potential homes in a relatively small neighbourhood used for the short-term rental market, it’s hardly surprising that the character of the neighbourhood is rapidly changing, while fears grow that it is losing its soul.

Some cities have already weathered the first wave of negative impacts from short-term rentals – and are beginning to fight back. New laws have been put in place, to limit long-term damage to communities. In Paris and London, authorities introduced a cap for short-term rentals to 90 days per year. This helped to ensure that housing built for residents is not taken out of long-term rental markets and used solely as a business asset by owners.

Balconies in Barcelona. Image: mrci_/Flickr/creative commons.

Barcelona has introduced a range of measures, including fines for companies that advertise unlicensed units. Across the world, relatively small “tourist taxes” of £1 per night now include serviced apartments. Proceeds are invested back into cities, to support local services and address the disruptive impacts on neighbourhood life.

So far, English regional cities have been pretty slow to act. Manchester City Council does not yet have a policy to address the sector. Liverpool City Council has been more proactive, pushing for national regulations to force landlords to register short-term rental properties. It has also lobbied central government for the ability to limit rentals to 90 days – a planning tool currently only available in London.

Unless coordinated action is taken at local and national levels, the short-term rental market will make the housing crisis, which is gaining pace in England’s regional cities, even worse. Local communities and politicians need to come together quickly, and learn from cities that have already developed effective policies – before some neighbourhoods change irrevocably.

The Conversation

Jonathan Silver, Leverhulme ECR Fellow, University of Sheffield.

This article was originally published on The Conversation. Read the original article.

 
 
 
 

To make electric vehicles happen, the government must devolve energy policy to councils

The future. Image: Getty.

Last week, the Guardian revealed that at least a quarter of councils have halted the roll-out of electric vehicle (EV) charging infrastructure with no plans to resume its installation. This is a fully charged battery-worth of miles short of ideal, given the ambitious decarbonisation targets to which the UK is rightly working.

It’s even more startling given the current focus on inclusive growth, for the switch to EVs is an economic advancement, on an individual and societal level. Decarbonisation will free up resources and push growth, but the way in which we go about it will have impacts for generations after the task is complete.

If there is one lesson that has been not so much taught to us as screamed at us by recent history, it is that the market does not deliver inclusivity by itself. Left to its own devices, the market tends to leave people behind. And people left behind make all kinds of rational decisions, in polling stations and elsewhere that can seem wholly irrational to those charged with keeping pace – as illuminted in Jeremy Harding’s despatch from the ‘periphery’ which has incubated France’s ‘gilet jaunes’ in the London Review of Books.

But what in the name of Nikola Tesla has any of this to do with charging stations? The Localis argument is simple: local government must work strategically with energy network providers to ensure that EV charging stations are rolled out equally across areas, to ensure deprived areas do not face further disadvantage in the switch to EVs. To do so, Ofgem must first devolve certain regulations around energy supply and management to our combined authorities and city regions.


Although it might make sense now to invest in wealthier areas where EVs are already present, if there isn’t infrastructure in place ahead of demand elsewhere, then we risk a ‘tale of two cities’, where decarbonisation is two-speed and its benefits are two-tier.

The Department for Transport (DfT) announced on Monday that urban mobility will be an issue for overarching and intelligent strategy moving forward. The issue of fairness must be central to any such strategy, lest it just become a case of more nice things in nice places and a further widening of the social gap in our cities.

This is where the local state comes in. To achieve clean transport across a city, more is needed than just the installation of charging points.  Collaboration must be coordinated between many of a place’s moving parts.

The DfT announcement makes much of open data, which is undoubtedly crucial to realising the goal of a smart city. This awareness of digital infrastructure must also be matched by upgrades to physical infrastructure, if we are going to realise the full network effects of an integrated city, and as we argue in detail in our recent report, it is here that inclusivity can be stitched firmly into the fabric.

Councils know the ins and outs of deprivation within their boundaries and are uniquely placed to bring together stakeholders from across sectors to devise and implement inclusive transport strategy. In the switch to EVs and in the wider Future of Mobility, they must stay a major player in the game.

As transport minister and biographer of Edmund Burke, Jesse Norman has been keen to stress the founding Conservative philosopher’s belief in the duty of those living in the present to respect the traditions of the past and keep this legacy alive for their own successors.

If this is to be a Burkean moment in making the leap to the transformative transport systems of the future, Mr Norman should give due attention to local government’s role as “little platoons” in this process: as committed agents of change whose civic responsibility and knowledge of place can make this mobility revolution happen.

Joe Fyans is head of research at the think tank Localis.