Three common misconceptions about short-term rentals

https://www.youtube.com/watch?v=ITvlxKPA8v0

Short-term rentals are often at the centre of heated debate – from housing supply to regulation and taxation. But according to Ben Spier, Head of Regulation and Policy at Sykes Holiday Cottages, much of the noise is driven by misunderstanding rather than fact.

On a recent episode of the Holiday Let Insider podcast, Ben broke down three of the most persistent misconceptions about the short-term rental (STR) sector – and explained why getting these wrong leads to poor policy decisions and unfair narratives about hosts and property managers.

Here are the three misconceptions Ben believes the industry still needs to tackle head-on.

1. “Short-term rentals are just second homes”

One of the most common – and damaging – misconceptions is that self-catering properties and short-term rentals are the same as second homes.

According to Ben, this simply isn’t true. Short-term rentals are active micro-businesses, not predominantly empty properties used a few weeks a year. They operate with regular occupancy, employ local services (cleaners, maintenance teams, tradespeople), and drive significant spending in local economies.

Ben points out that a self-catering property can contribute up to six times more to the local economy than a second home, purely because of guest spend in nearby pubs, restaurants, shops, attractions, and service providers.

This distinction matters. When policymakers fail to separate second homes from short-term rentals, they risk introducing blanket measures that penalise businesses that actively support tourism, employment, and rural economies.

2. “The growth of Airbnb equals the growth of the entire sector”

Another misconception Ben addressed is the idea that rising Airbnb listings automatically mean explosive growth across the whole short-term rental sector.

Much of the data quoted in media coverage comes from scraped OTA listings, which often show an increase in properties appearing on platforms like Airbnb. But Ben explains that this doesn’t necessarily mean more properties exist – it often means the same properties are being listed across multiple platforms, or have been duplicated for marketing reasons.

In other words, platform growth is not the same as sector growth.

Without accurate, nuanced data, this misconception feeds narratives that the STR sector is expanding uncontrollably, when in reality it may simply be becoming more digitally visible. Ben notes this is one of the reasons the industry has long supported a national registration scheme – to replace guesswork with facts.

3. “Half a million short-term rentals means half a million lost homes”

Figures suggesting there are 500,000 short-term rentals in the UK are frequently used to imply that the same number of homes have been removed from the long-term housing market.

Ben strongly challenges this assumption.

That headline number typically includes:

• Duplicate listings across multiple platforms

• Spare rooms within primary residences

• Homes occasionally let out when owners are away

• Shepherd huts, pods, annexes, and converted farm buildings

• Properties with planning restrictions that prevent long-term residential use

Many of these properties could never be used as permanent homes, regardless of whether short-term rentals existed or not.

Lumping all of these into a single number creates a misleading picture – and risks policy responses that fail to address the real causes of housing shortages.

Why these misconceptions matter

As Ben explains, misconceptions don’t just shape public opinion – they influence legislation, taxation, and regulation. When short-term rentals are misunderstood, policies risk being disproportionate, anti-growth, and economically damaging, particularly in tourism-dependent regions.

Ben is optimistic that better data, clearer definitions, and improved engagement between the industry and policymakers will help reset the conversation – especially with the introduction of registration schemes and more transparent reporting.

For hosts, property managers, and investors, understanding – and challenging – these misconceptions is an important part of protecting the future of the sector.

Listen to the full conversation with Ben Spier on the Holiday Let Insider podcast to hear his insights on regulation, taxation, and what’s next for short-term rentals in the UK. Catch the episode on YouTube, Spotify, or Apple.