Travel on Airbnb: Housing and Economic Impacts in the UK
A new landmark report from EY aims to better understand the role of short-term lets within the housing market while examining Airbnb’s significant economic contribution to the UK.Report published in September 2024.
Across the UK, homes are the heart of our communities—they’re where life happens, not just places to live. Housing is a basic necessity that influences every aspect of our lives. As the cost of living rises and housing concerns grow, understanding the true factors impacting housing availability in the UK is more important than ever.Airbnb recognises the historic housing challenges facing some communities in the UK and we want to be a responsible partner.This first-of-its-kind report from EY uses Airbnb and public data to analyse economic and housing impacts at both national and regional levels, including insights from 15 local case studies.EY’s findings reveal that the share of properties listed full-time on Airbnb are too small to have any significant impact on national housing supply or affordability. Additionally, the economic benefits generated by travel on Airbnb far outweigh any potential housing impacts in every nation, region and local authority.
Across the UK, homes are the heart of our communities—they’re where life happens, not just places to live. Housing is a basic necessity that influences every aspect of our lives. As the cost of living rises and housing concerns grow, understanding the true factors impacting housing availability in the UK is more important than ever.Airbnb recognises the historic housing challenges facing some communities in the UK and we want to be a responsible partner.This first-of-its-kind report from EY uses Airbnb and public data to analyse economic and housing impacts at both national and regional levels, including insights from 15 local case studies. EY’s findings reveal that the share of properties listed full-time on Airbnb are too small to have any significant impact on national housing supply or affordability. Additionally, the economic benefits generated by travel on Airbnb far outweigh any potential housing impacts in every nation, region and local authority.
Across the UK, homes are the heart of our communities—they’re where life happens, not just places to live. Housing is a basic necessity that influences every aspect of our lives. As the cost of living rises and housing concerns grow, understanding the true factors impacting housing availability in the UK is more important than ever.Airbnb recognises the historic housing challenges facing some communities in the UK and we want to be a responsible partner.This first-of-its-kind report from EY uses Airbnb and public data to analyse economic and housing impacts at both national and regional levels, including insights from 15 local case studies. EY’s findings reveal that the share of properties listed full-time on Airbnb are too small to have any significant impact on national housing supply or affordability. Additionally, the economic benefits generated by travel on Airbnb far outweigh any potential housing impacts in every nation, region and local authority.
Airbnb generates billions for local communities
In 2023, travel on Airbnb contributed £5.7 billion to the UK economy, supporting over 75,000 jobs. That means income staying locally, providing an integral boost for families and local businesses.The typical host in the UK earned nearly £5,500 annually, equivalent to two months of additional pay for the average UK household.
Airbnb has little to no influence on housing supply in the UK
All Entire Homes listed on Airbnb account for less than 0.7% of total dwellings in the UK. The majority of these homes are let for just 1 month a year, and according to EY, have little to no impact on housing supply. Entire Home listings hosted for 90 nights or more per year on Airbnb account for just 0.17% of total UK dwellings.
Housing affordability challenges are driven by factors unrelated to Airbnb
The report finds that across the vast majority of the UK, travel on Airbnb has had no tangible impact on housing costs.According to EY, over 95% of the changes in housing costs from 2015 to 2022 were driven by factors unrelated to the growth of short-term lets, such as the lack of housebuilding, soaring interest rates, and an increase in the house price-to-earnings ratio.
Airbnb generates millions for local communities
The flexibility of hosting on Airbnb empowers everyday families to benefit from sharing their spare or underutilised space. The majority of hosts list just one space and 40% say the additional income helps them to afford their home — offering a vital way to support their income and protect their living standards.Hear from more hosts on Airbnb on their experiences.
Airbnb supports new regulation for short-term lets
Airbnb has been calling for new rules for short-term lets since 2019, including publishing our own proposals, which advocated for a simple, modern registration system for hosts.For the very few areas that face more complex housing challenges, a registration system will provide local authorities with the evidence needed to enforce local rules, support their communities, and protect the benefits of tourism.
“While only a tiny fraction of British homes are listed on Airbnb - typically for just a few days a month - this activity is generating billions for the UK economy and supporting tens of thousands of jobs—and Airbnb data shows it helps four in ten hosts afford their homes. We want to make it easy for local authorities to track the positive impacts of home sharing, and for additional targeted measures to be introduced to support the sustainable growth of short-term letting activity, where needed. This is why we have consistently led in calling for national legislation for short-term lets.”Amanda CupplesGeneral Manager for Airbnb in Northern Europe
“While only a tiny fraction of British homes are listed on Airbnb - typically for just a few days a month - this activity is generating billions for the UK economy and supporting tens of thousands of jobs—and Airbnb data shows it helps four in ten hosts afford their homes. We want to make it easy for local authorities to track the positive impacts of home sharing, and for additional targeted measures to be introduced to support the sustainable growth of short-term letting activity, where needed. This is why we have consistently led in calling for national legislation for short-term lets.”Amanda CupplesGeneral Manager for Airbnb in Northern Europe
“While only a tiny fraction of British homes are listed on Airbnb - typically for just a few days a month - this activity is generating billions for the UK economy and supporting tens of thousands of jobs—and Airbnb data shows it helps four in ten hosts afford their homes. We want to make it easy for local authorities to track the positive impacts of home sharing, and for additional targeted measures to be introduced to support the sustainable growth of short-term letting activity, where needed. This is why we have consistently led in calling for national legislation for short-term lets.”Amanda CupplesGeneral Manager for Airbnb in Northern Europe
Figures mentioned above that are not referenced are extracted from the EY Report dated August 2024 commissioned by Airbnb.
Figures mentioned above that are not referenced are extracted from the EY Report dated August 2024 commissioned by Airbnb.