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Special Report: Platform policies ‘unacceptable’

UK MPs’ report makes uncomfortable reading for Airbnb. Ian Taylor reports

The report of the UK House of Commons All-Party Parliamentary Group for Leisure, Tourism and the Hospitality Industry on its ‘Inquiry into the Sharing Economy’ makes interesting reading.

It focuses on platforms providing tourism accommodation, identifying Airbnb, One Fine Stay, HomeAway and Under the Doormat.

The report is by no means hostile to the sector. It notes: “The sharing economy provides significant opportunities for tourism growth in the UK.”

The forward by group chairman Gordon Marsden states: “The development of the sharing economy enhances opportunities for growth by providing increased capacity, expanding customer choice and providing the opportunity for new and enhanced experiences.”

But the concerns it raises and the recommendations it makes will almost certainly concern the platform businesses.

The report, published this week, adds to the increasing pressure on the sector.

The European Commission last week demanded Airbnb align its terms and conditions and presentation of prices with EU consumer rules.

The EC has given the company until the end of August to propose solutions “on how to bring its conduct into compliance” or face enforcement action.

In New York last week, Airbnb lost a high-profile battle with the city’s housing committee which ordered it to hand over information on hosts to the Office of Special Enforcement as the authorities seek to crack down on operators of unlicensed hotels.

Adverse impacts

The report by the group of MPs identifies three areas of concern.

One: it notes “considerable concerns that hosts providing accommodation via sharing economy platforms do not comply with health and safety regulations”.

Two: “Local authorities claim professional landlords are converting residential long-term leasehold properties to short-term tourism accommodation businesses, leading to residential housing shortages and forcing up property prices.”

Three: “The operation of de-facto-hotels is damaging local communities . . . Residents complain that local communities are being adversely impacted.”

On the first point, the MPs conclude: “Visitors are entitled to a minimum level of safety regardless of the type of accommodation they use and method by which it is booked.

“We have found the systems in place for informing hosts of their legal responsibilities are inadequate, to the extent that some even allow hosts to register properties if they confirm they have no fire safety equipment installed.

“Sharing economy companies are very poor at providing information to hosts [on] their statutory responsibilities regarding the health and safety of guests.

“Leading sharing economy platforms do not check if hosts are compliant with regulations such as gas and fire safety before allowing them to post a property on their site.”

The report quotes Airbnb’s terms and conditions which state: “Airbnb has no control over and does not guarantee the existence, quality, safety, suitability or legality of any listing.”

It also notes:

“Where there are online checklists for the host to complete, these checklists do not include the most important measures that all providers of paid accommodation are required by law to undertake, such as completing a fire safety assessment of the property and having gas services check to ensure the property is Gas Safe compliant.

“If hosts state in the checklist that they do not provide smoke alarms, CO2 monitors or fire safety equipment, the registration process still allows the host to list their property and start taking bookings. This is unacceptable.”

‘Few if any properties ever inspected’

The report suggests the sector’s failings are compounded by the fact that listed properties are barely subject to inspection.

It points out: “Regulatory authorities are not able to locate sharing economy accommodation providers, making it difficult to implement an effective inspection regime.”

The MPs cite “evidence that the London Fire Brigade does not have the data or resources to deal with the large increase in tourist accommodation provided via the sharing economy”.

At present, they note: “Few, if any, sharing economy properties are ever inspected.”

They argue for “sufficient transparency to allow enforcement authorities to know the location of all tourism accommodation properties” and urge the government to act urgently “to assess whether local enforcement agencies have adequate resources to carry out safety inspections of tourism accommodation businesses”.

The report also recommends that:

“Sharing economy companies take greater responsibility for informing hosts of their statutory obligations, especially in relation to health and safety and fire safety.

“Sharing economy accreditation schemes are rolled-out across all properties on all platforms.

“Sharing economy companies develop and implement procedures that ensure hosts have undertaken a fire safety assessment, a health and safety assessment and, where relevant, have Gas Safe certification.

“Accommodation providers should not be allowed to register properties without proof of these assessments.”

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