Westminster City Council is backing a proposed data-sharing agreement between HMRC and the National Fraud Initiative (NFI) to help track down property owners suspected of illegally operating short-term lets.
The council believes access to the information could strengthen enforcement of London's 90-night short-let rule. Homeowners in London can generally short-let their property for up to 90 nights in a calendar year without planning permission. Those exceeding the limit must obtain planning permission or potentially face enforcement action.
Scale of the issue in Westminster
The issue is particularly acute in Westminster. The council estimates that there are more than 13,000 short-term rentals in the borough, including more than 10,000 entire properties. At least 2,700 properties are suspected of being let unlawfully beyond the 90-night limit.
Council figures also show that 9,389 homes were let for more than 90 nights during 2024. That represented 68% of all whole homes offered for short-term letting in Westminster.
Data-sharing plan could boost enforcement
Westminster leader Paul Swaddle has written to Work and Pensions Secretary Pat McFadden backing greater data sharing. The NFI matches data held by public and private sector bodies to help detect fraud. It is currently discussing a data-sharing agreement with HMRC.
If agreed, Westminster could seek access to HMRC information supplied through the NFI. The council wants to use the data to identify potential short-let breaches and support planning enforcement.
Swaddle said the arrangement could "support the detection of fraudulent activity relating to short-term lets" and enable "more effective planning enforcement". The council believes matching addresses and income indicators could help enforcement officers identify properties generating income from short-term letting. It could also help uncover council and social housing being illegally offered as holiday accommodation.
Existing Airbnb data-sharing scheme
The Cabinet Office and Airbnb already have a data-sharing arrangement targeting social housing fraud. The scheme allows participating councils to compare housing records with Airbnb listings. Early checks identified 470 potential cases across participating local authorities.
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."
Westminster hopes combining HMRC, council and booking-platform information will make suspected breaches easier to identify. However, the council does not currently have the proposed access to HMRC data. The HMRC-NFI data-sharing agreement remains under discussion.
