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Homeowners in London making money from illegal Airbnb-style lets face new tax-led crackdown

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Friday, 25 September, 2026
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Homeowners in London making money from illegal Airbnb-style lets face new tax-led crackdown

Westminster City Council is seeking access to HMRC data to identify homeowners illegally operating Airbnb-style short lets, the Evening Standard has reported. Cllr Paul Swaddle OBE, Leader of Westminster City Council, has written to Cabinet Office minister Pat McFadden calling for co-operation to tackle the large number of short-term lets in central London suspected of breaking the 90-day rule, the maximum number of nights a home can be let in London each year without planning permission.

Westminster estimates there are more than 13,000 short-term rental properties in the city, with at least 2,700 suspected of breaking the 90-day rule. Neighbours often bear the cost, from noise when properties are let to groups to rubbish left outside.

Cllr Swaddle highlighted that the National Fraud Initiative, which shares data between public and private bodies to prevent fraud, is in talks with HMRC about a data-sharing agreement. He said:

 "Once in place, this would enable Westminster Council to seek access to the HMRC data provided through the NFI to support the detection of fraudulent activity relating to short-term lets, as well as facilitate more effective planning enforcement."

The council believes matching HMRC, council and booking data would give it a much better chance of establishing fraud, and would also strengthen its work with the Cabinet Office and Airbnb to stop council and social housing being let illegally. Cllr Swaddle said: 

"Matching addresses and income indicators could help identify properties that should not be used as short-term lets at all and allow us to restore them to their purpose of housing individuals and families who are waiting for a home." 

The same data could also help the council act against rogue businesses, such as candy stores avoiding business rates and selling counterfeit goods.

You can read Nicholas Cecil's article in The Standard in full here.

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