Airbnb backs down on rental limits in Amsterdam, London

Airbnb has agreed for the first time to cap the number of nights a host can rent out a space annually in London and Amsterdam in a major compromise with regulators.

The home-sharing platform told hosts in London on Thursday that they would now be subject to the city's 90-day-a-year limit on renting out homes, reported The Wall Street Journal. Airbnb will apply a similar 60-day restriction in Amsterdam to comply with the city's rules. Hosts in both cities will also need licenses to rent their properties.

"We want to be good partners for everyone in [Amsterdam] and ensure home sharing grows responsibly and sustainably," James McClure, Airbnb general manager for Northern Europe, said to Bloomberg.

Airbnb will reportedly implement a feature on its website in 2017 to automatically restrict the number of days for which a property can be rented.

Rental cap proponents have cited concerns that homeowners turning to Airbnb to rent properties are cutting into the available supply of housing available to long-term tenants in competitive rental markets.

The home-sharing platform is also facing regulatory crackdowns at home.

San Francisco is reviewing a bill like the one in Amsterdam, which would limit users to renting out their homes for no more than 60 days.

The San Francisco-based company is also trying to work on a compromise with New York City over strengthened penalties on short-term rentals that make it significantly harder for Airbnb to operate.

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