Foundation Home Loans has launched a product to help AirBnB landlords looking to let out their properties on a short-term basis without the need for an assured shorthold tenancy (AST) agreement.
As a broker, my immediate reaction to this is extremely positive. Clients ask me on a weekly basis if using AirBnB is a feasible strategy. Potential revenues are higher, and AirBnB is proving to be a very popular option for tourists and corporate clients.
This is a welcome addition to the market, and hopefully one that others will follow.
My concern, from a wider perspective, is that an uptick in property being purchased purely as holiday homes is going to be detrimental to the UK housing market as a whole. The rise of holiday homes across the Devonshire coast has gutted local economies. This could further exacerbate the challenges first-time buyers face in city centres.
The lender wisely assesses borrowing based on standard six-month AST rental assessment. This provides investors much needed flexibility, without it being to the detriment of other areas of the market, and overall I think this is a positive move.
Stuart Phillips is a principal of Aalto Mortgages
