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business Essential news, comment and analysis


The BHA’s Ufi Ibrahim says sites such as


Airbnb involve ‘professional landlords operating outside UK


regulations on an industrial scale’


MPs say ‘sharing’ sector must be subject to rules


MPS DEMAND THE GOVERNMENT ‘SET CLEAR’ OBJECTIVES ON REGULATING SITES SUCH AS AIRBNB AND UBER. IAN TAYLOR REPORTS


MPs called on the government to “set out objectives for the regulation of disruptive change” in the digital economy in a report last month, noting “a risk that regulation always lags behind technology”.


But industry associations argue


little is being done to address the issue in Westminster or Brussels. British Hospitality Association


chief executive Ufi Ibrahim told the Commons select committee which produced the report that the ‘sharing economy’ and sites such as Airbnb involve “professional landlords operating outside UK regulations” on an “industrial scale”.


72 travelweekly.co.uk 25 August 2016


The BHA estimates 40% of listings on home-exchange sites involve professional landlords, that a similar proportion of London listings are by multiple-property owners renting accommodation year round, and that the top 1,000 hosts net £150 million in annual revenue. It argues the lack of regulation is “endangering the public” and, among other changes, wants a cap on the number of nights a year accommodation can be let. The MPs listened to senior


figures from Airbnb and Love Home Swap as well as from other sectors and reported:


“The tension is keenly felt. Often digital businesses do not have to follow the same regulation and compliance as incumbent businesses . . . Airbnb providers are not bound by health and safety regulations of hotels.” They concluded “it would be


ludicrous to try to hold back the tide of technology”, but suggested the government “ensure the legal avoidance of regulation is not the sole or primary source of competitive advantage” and said: “Regulation must . . . ensure businesses are not excluded from safeguards such as health and safety regulations.” The MPs suggested the


government “study ways in which platform providers become key players in ensuring users comply


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