Westminster Council seeks HMRC data to target illegal Airbnb lets

Westminster City Council is seeking to access Her Majesty's Revenue and Customs (HMRC) data to identify homeowners who are flouting rules on short-term lets. The council's leader, Paul Swaddle, has written to a Cabinet minister to request co-operation in tackling the significant number of short-term rental properties in the borough suspected of breaking regulations.

Enforcing the 90-day rule

The 90-day rule stipulates that properties in London can only be rented out on a short-term basis for a maximum of 90 days per year without requiring planning permission. Westminster estimates that there are more than 13,000 short-term rental properties within its boundaries. Of these, at least 2,700 are suspected of operating illegally by exceeding the 90-day limit.

Councillor Swaddle highlighted that the National Fraud Initiative (NFI), a scheme that facilitates data sharing between public and private sectors to combat fraud, is currently in discussions with HMRC regarding a data-sharing agreement. If established, this agreement would allow Westminster Council to seek access to HMRC data through the NFI. This access, Councillor Swaddle explained, would support the detection of fraudulent activity related to short-term lets and improve planning enforcement.

Identifying illegal activity

The council believes that by matching HMRC income and tax data with council records and booking platform information, it can more effectively identify properties being used for illegal short-term lets. This approach could also help in identifying properties that should be returned to their primary purpose of housing individuals and families. The council has also welcomed co-operation from booking platforms like Airbnb in establishing fraud in social housing and plans to speed up crackdowns on illegal short-term letting in social and council-owned properties.

Gaining access to HMRC information could also enable the council to increase action against businesses that may be avoiding business rates, selling illicit goods, or breaking other financial regulations.