The development in online transaction platforms has enabled the growth of peer-
to-peer (P2P) accommodation services globally. This emergent phenomenon has
disrupted traditional tourism and hospitality sectors since the global economic
downturn around 2010. Platforms like Airbnb have capitalised on technological
advancements and shifts in consumer preferences and for some to democratise
lodging choices, sparking considerable academic interest. Such interest principally
focuses on how the rise of P2P accommodation fosters urban economic and tourism
growth, establishing competition with hotel offerings and tourism practices. The
business model has contributed to urban economies whilst also identified as a trigger
for a new wave of gentrification through shifting neighbourhood dynamics and
property values. The UK has a vibrant and diverse tourism sector and is a leading
country in the sharing economy. It appears P2P accommodation, taking housing
resources away from the housing system, has potentially aggravated the existing
housing crisis in the UK due to the deregulation of short-term rentals. This
phenomenon calls for scholars to develop new theoretical frameworks and empirical
strategies to better understand the processes and outcomes underpinning the
sharing economy in different urban contexts.
This research seeks to provide an exploratory examination of the new form of
gentrification prompted by P2P accommodation, via a study of three major UK cities.
The thesis focuses on three key components. Initially, the spatio-temporal
characteristics, rent gap opening, and neighbourhood profiles are analysed. These
findings show that Airbnb in the UK revealed a rapid growth in listings since 2015,
especially in Greater London, which challenges the housing and long-term rental
sectors. Airbnb thrives, notably around central tourist locations and is spreading to
the outskirts of major urban centres, showing varied spatial patterns depending on
city size. The platform has introduced large rent gaps, with Airbnb revenue
surpassing long-term rentals, particularly in central tourist districts. Urban centres
such as Greater London and Greater Manchester see the largest rent gap driven by
their cultural and international character, with student-heavy locales like Bristol also
significantly affected.
Secondly, employing repeat sales design and multi-level modelling, it is possible
to look at the impact of long-term occupied Airbnb on neighbourhood housing prices
at the neighbourhood scale. The approach reveals how Airbnb’s location and effect
has a distinct decentralisation gradient. Central urban areas, with their stable
housing markets, experience less Airbnb-induced price inflation compared to
suburbs where limited housing stock makes them more vulnerable to price hikes due
to Airbnb scarcity effects. The penetration of Airbnb into smaller flat properties exerts
a greater impact on housing prices than house-type Airbnb, although this also fosters
gentrification, eroding traditional residential communities. This intricate pattern also
underscores the socio-spatial disparities, where the shock of Airbnb is particularly
disruptive in central and deprived areas.
Finally, the research explores Airbnb under the COVID-19 pandemic period,
focusing on Greater London. Here the Airbnb market experienced a notable
contraction, particularly in the central regions, as part-time hosts left and listings in
high-income or tourism-reliant areas declined. Professional hosts owning multiple
properties weathered the storm adeptly, repositioning their offerings to suburbs and
upscale districts to mitigate revenue disruptions. The pandemic altered the dynamics
of Airbnb revenue with a new preference for locations offering green spaces and
retail amenities. Nonetheless, the presence of high revenues surrounding certain
deprived neighbourhoods in the central and western parts of London provides
compelling evidence of the perpetuation of gentrification driven by Airbnb.
Through these empirical contributions, the thesis offers a new and novel
understanding of the disruptions of Airbnb to neighbourhoods and local housing
markets and the deepening spatial inequality induced by Airbnb before, during and
after the COVID-19 period.
