The non-intervention bill, which is currently working its way through the UK parliamentary system, it’s been shown by an analysis report that homeowners of London will probably be able to earn thousands by renting out the spare rooms of their homes. The bill, which was deregulated in 1973 and first announced in 2013 is now apparently viewed as the outdated version. According to the current law, Londoners are strictly prohibited to rent out their rooms or homes on a short term or three months to the guests or visitors.
Within the contrast to other residents across UK, inhabitants of London are bound to get more planning permission if they tend to let their rooms or home on this basis. As soon as the law gets changed, Londoners will be able to rent out their rooms or their entire property to the visitors for up to 3 months or even for a year that would result in to help them make more money and would improve London Rentals market. As per the stats given by E J Harris, London’s Letting Agency, A homeowner by putting out their two bedroom apartment in the prime central London potentially earn from £2,000 per month up to over £5,000 per month, as per the location. This is adding a potential additional income over the three months of anything from £6,000 up to £15,000 or more.
At the luxury locations such as Mayfair or Knightsbridge, a penthouse owner can potentially earn £10,000 per week, or up to £120,000 over a three month period. E J Harris added that if a home owner plans to rent out a room in the apartment or an en-suite bedroom in Knightsbridge could make up to up to £6,600 over a three month period whilst renting out a two bedroom in Mayfair apartment for three months let could earn £500 a week or £6,000. Consequently, a room in two bedroom property in St John’s Wood could earn £250 a week, or up to £3,000 over three months.
E J Harris also added that it’s not just the home owners in Luxury addresses who would be benefitted significantly, but renting out a typical apartment in inner London would also be able to earn around £100 per week that helps out the homeowners to get extra £1,200 over three months. Apart from the wealthy homeowners in Mayfair or Knightsbridge who could earn from the short term apartment let or room share, it’s unlikely that anyone at this end of the market will prefer to penetrate the short let or room share flea market, said by the managing director at Elizabeth Harris.
In a further conversation, she added that, ‘there is an extra £120,000 pocket change for the super wealthy oil Sheikh or Russian Oligarch and the people who dwell in the addresses such as One Hyde Park or The Knightsbridge. However, I anticipate that there is a strong potential market from young professionals aged in their late 20s to late 30s who own their first or second home.’
She said that, ‘ demographically, I believe that a post non-intervention bill housing market could experience a major upsurge in the room shares and short-lets in the locations such as- Notting Hill, Soho, Fitzrovia, and Midtown where there are plentiful young home owners. If the rules are stable, I estimate that a two bedroom flat within these areas would be able to earn anything from £300 per week or up to £3,600 over three months.’
By putting the more light on it, E J Harris shows up that in the present legislation, homeowners are not allowed to let their properties for the short lets of up three months unless they obtain planning permission. In case if homeowners tends to violate the rule, they have to face a potential fine of up to £20,000. The new rules will give more flexibility to the homeowners. The firm explained that the stipulation of short term lets is established by the rise in websites and applications advertising housing for the short term rentals. During the major sporting events which would take place in London such as- Wimbledon, The ATP World Tour Tennis and the upcoming rugby World Cup, the short term lets will increase more. Harris also said that the new rules will also benefit the travellers and guests who are bound to live for the short term.
‘Since short term letting offers a great alternative to hotels, tourists and professionals will be able to find more flexible accommodation at highly competitive price. It will also keep them away from the overpriced lodging options in peak season,’ she said. Moreover, the rule will also enable the underused and empty properties to earn more.