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Airbnbs in Whitstable, Margate, Ramsgate and Folkestone are booming - but is it destroying our seaside towns or helping them?

05:00, 16 May 2024

updated: 13:30, 16 May 2024

Airbnbs… for some they are the scourge of our most popular seaside resorts - depleting housing supplies and creating ghost towns during the off-season.

But there is an equally compelling argument to suggest they are, in fact, an essential part of the accommodation mix - hosting tourists who bring money to pump into the local economy and filling a gap left by a dearth of hotels in the county.

Airbnb - an online phenomenon which is having an impact on our towns. Picture: Airbnb
Airbnb - an online phenomenon which is having an impact on our towns. Picture: Airbnb

Yet it’s hard not to have a knee-jerk reaction to the number of Airbnb properties in our coastal towns.

Especially when they appear to dwarf the number of flats and apartments available for those actually wanting to live there.

For example, when KentOnline looked for Whitstable Airbnbs, the total number available was a staggering 542. The number of apartments to live in as listed by Rightmove in the same area? A mere eight.

“Airbnbs have stripped the life out of the core of the town,” says Graham Cox of the Whitstable Society. It is a group dedicated to improving and protecting an area long since dubbed Islington-on-Sea, such has been its popularity over the last 20 years with Down from Londoners (DfLs).

Mr Cox says: “You can see by the number of lights in the buildings. I know it gets cold in winter, but Airbnbs make anywhere within 100 metres of the seafront ice cold - there’s nothing going on.”

A comparison of Airbnb properties vs Rightmove apartments to rent
A comparison of Airbnb properties vs Rightmove apartments to rent

Whitstable is far from alone in adjusting to the short-term holiday website’s booming popularity.

Margate has 443 Airbnbs compared to just 44 places to permanently live; Broadstairs 350 to 12; Folkestone 306 to 46.

They create an easy headline. In fact, the MailOnline recently declared such was the explosion in numbers of holiday lets through the popular website, it had “ripped the heart out” of Ramsgate.

And the finger of blame is almost always directed at Londoners with ample disposable income and keen to invest in property.

But the truth is rather more nuanced and those figures come with a host of caveats that cannot be ignored - more of which in a moment.

“Some forget,” says Philip Thorley, boss of Thanet pub chain Thorley Taverns, “Thanet has always relied heavily on tourism since the Victorian era, with out-of-towners, often Londoners or other Kentish folk, forming the backbone of our visitor economy.

“They contribute significantly through local spending, eating out, pubs and shopping, and we should actively encourage them.

“Airbnb is part of the mix and fills an important gap in quality accommodation that was never there previously which makes the area even more desirable, allowing tourists weekend getaways or longer stays, often leading to permanent relocations. This is absolutely vital to our tourism-dependent economy.”

Mr Thorley, son of the late Frank Thorley who founded the popular pub chain, is himself of London stock - Frank moving to Thanet back in the 1970s after falling in love with the area after taking, you guessed it, regular holidays there. Few would doubt the family’s considerable commitment to the district.

He added: “We must avoid repeating the mistakes of the 1990s, which left Ramsgate and Margate, in particular, with many empty houses, greatly reduced tourism, and a damaged reputation which is only now returning.

Ramsgate and its marina has seen a new lease of life in recent years
Ramsgate and its marina has seen a new lease of life in recent years

“The current positive investment trend brings jobs and gradually restores the Thanet towns' former glory. We should embrace visitors who support the local economy throughout the year and those who want to make it their home.”

But the typical Airbnb option is a complicated beast to nail down. By its very nature, those hundreds of properties may only be available for a few weeks a year as local residents rent out their homes while they themselves go on holiday. Or they may be dedicated holiday lets.

Likewise, that Airbnb figure for each town is a total of the available properties up for rental at some point over the year. While the Rightmove figure is a snapshot of available properties on one given day. After all, only one person has to snap up a flat on a long-term contract and it’s off the market. The Airbnb property may be in need of numerous people renting it out to sell out. A fair comparison, it is not.

But it does highlight just how many property owners are making money by turning their hand to the tourism business. They are helped by a concerted effort by tourism chiefs to get visitors to expand the popular day-trip to a longer stay.

Visit Kent, the county’s inward tourism organisation, says there are, countywide, about 11,000 properties available to rent at any given time - both on Airbnb and alternative holiday home rental providers.

Deirdre Wells - chief executive of Visit Kent
Deirdre Wells - chief executive of Visit Kent

“It's absolutely true,” says its CEO Deirdre Wells, “to say that Airbnb is a bit of a lifesaver for the visitor economy. Although we are a big county in quite a strong destination, we have probably less hotel stock than an equivalent county of our size. So the short-term rental market does really fill that gap.”

The county’s lack of hotels is certainly not a new issue. Visit Kent says it continues to work “extraordinarily hard” to try and attract hotel providers but, by the very nature of the beast, it is a slow process. Airbnbs, therefore, provide an immediate option.

But perhaps underlining the concerns of Whitstable residents, she points to the seasonal nature of the county’s short-term lets. She says in January 2023, the occupancy rates of the holiday rentals available was around 39%. Fast forward to August of the same year and it was 71%. As an average, it’s around 52%. Which can mean an awful lot of properties sat empty. However, rental fees alone topped a total of £250,000.

“They don’t think about what they’re doing,” complained local resident Shirley O’Neill of those snapping up properties in Whitstable only to rent out. “They are just doing it for the money. It’s not a community any more - it’s finished."

An online survey, carried out by the Canterbury Green Party 18 months ago, revealed 87.6% of residents had concerns about short-term holiday lets or Airbnbs in Whitstable.

Whitstable has become hugely popular with tourists - fuelling an Airbnb boom. Picture: Stock image
Whitstable has become hugely popular with tourists - fuelling an Airbnb boom. Picture: Stock image

“I think,” adds Graham Cox of the Whitstable Society, “it’s come from a lot of well-heeled Londoners who want to invest in somewhere like Whitstable. They may own three houses so they’ve got to do something with the one in Whitstable rather than leave it empty - so they rent it out.

“I think it’s fuelled by that investment impetus.

“As for the lack of hotels - and I do understand that to be an issue - you have to ask yourself whether hotels want to invest given the demand and choice the likes of Airbnb provides.”

Read our special features on the rise, fall and rise again of our coastal towns: Part one - part two - part three.

One development, in particular, proved to be something like catnip to the canny investor.

For years, the former Pleasurama site on Ramsgate seafront had stood empty. Over recent years, however, it has been transformed into the Royal Sands luxury development. Boasting more than 100 apartments, there are long-term plans for a hotel to sit alongside it, eventually.

The Royal Sands development will eventually have a string of shops, restaurants and cafes sat below the swanky apartments
The Royal Sands development will eventually have a string of shops, restaurants and cafes sat below the swanky apartments

There’s no denying the apartments contained within were not cheap - prices ranged from £275,000 for a one-bed to a penthouse at £735,000 but then a swanky apartment overlooking the sandy beach, it is fair to say, never was going to be. Nor, for that matter, was it ever going to be a place which eased the need for homes in the town - it was fairly and squarely aimed at those with some cash in their pockets.

What’s interesting, however, is that on our search of Airbnb, some 13 properties - more than 10% of all the apartments at Royal Sands - were listed for holiday rental. Some for more than £200 a night.

Says pub boss Philip Thorley: “Luxury developments like the Royal Sands project and the refurbishment of many Victorian houses create much-needed construction jobs and provide quality homes, including some Airbnbs.

“Local housing is crucial, and Thanet offers a steady supply of new and starter homes. As you drive around the area it is clear there is no shortage of new developments and apartments going up.

“Inward investment brings life and prosperity, as evidenced by my own family, now in its third generation of Thanet residents, who originally came from London during a previous boom and fell in love with the area. While challenges exist, we should embrace new opportunities to attract and retain visitors and new people in our community.”

The Royal Sands development during its construction in Ramsgate. Picture: Barry Goodwin
The Royal Sands development during its construction in Ramsgate. Picture: Barry Goodwin

Blueberry Homes, the developer behind the Royal Sands, adds: “We are proud Ramsgate natives. Many of our team fondly remember the vibrant 1960s and 70s, when holiday lets and guest accommodation filled nearly every house around town, from Wellington Crescent to the roads stretching along both East and Westcliff. As passionate locals, we're thrilled to bring ambitious developments like Royal Sands and the upcoming Gallery Walk Margate apartments to our beloved Thanet coastal towns.

“Royal Sands represents a major investment for the town, revitalising a prime site unused since the 1990s. The development's quality and Ramsgate's growing popularity are evident in the 90% sales rate of the beach-facing luxury apartments sold.”

Deirdre Wells of Visit Kent is clear on the benefits such short-term accommodation brings to the wider economy - pointing to tourism’s £4 billion contribution to Kent’s coffers and hospitality’s provision of 10% of all the county’s jobs.

She also points to a recent survey it conducted of residents living in major tourist towns in which there was a satisfaction rating of 86% - a figure she described as “off-the-scale” when compared to those living in popular spots like Cornwall.

And she points to a home truth which may not delight many.

Folkestone Harbour Arm has helped encourage longer stays in the town
Folkestone Harbour Arm has helped encourage longer stays in the town

She adds: “If there isn't sufficient housing for residents in the area, I don't think penalising and pointing the finger at the visitor economy and short term lets is the way forward. This is an issue around planning and making sure all parts of the economy are covered - whether you're people living locally or whether you're a visitor.

“There is a danger of killing the golden goose in the sense that tourism is a very important sector for Kent.”

And, ultimately, that is the issue.

Our seaside towns are undergoing a revival right now after years of devastating decline. That revival is being driven not by heavy industry but investment in creating tourism hubs - places which pull in visitors from London and further afield.

The visitors spend their money locally and local economies are buoyed as a result - creating jobs and opportunity. It also means we have some of the most desirable tourist destinations now right on our doorsteps.

Margate has seen a sharp rise in Airbnb rentals since its revival
Margate has seen a sharp rise in Airbnb rentals since its revival

As for Airbnb, there remains challenges ahead.

The concerns about the quality of some properties and the behaviour of those who visit them continues to, understably, rankle neighbours.

Graham Cox is hoping a new government will usher in nationwide regulations restricting their use.

Deirdre Wells, who is also on the board of the national Tourism Alliance, agrees some need to be ushered in.

She explains: “What we have called for - and it's being looked at by government - is a registration scheme so that these properties are statutorily registered so that it puts them on a level playing field with other providers like bed and breakfast and hotels.

Graham Cox of the Whitstable Society. Picture: Chris Davey
Graham Cox of the Whitstable Society. Picture: Chris Davey

“It would mean regulations covering, all sorts of health and safety regulations. It makes sure that from a consumer perspective, they know what they're getting and they feel safe. That's crucial.”

There is likely no end in sight to the Airbnb demand as it continues to grow and more property owners see the opportunities it offers.

Meanwhile, those living in towns which have become a victim of their own success will be hoping whatever regulatory changes come about, don’t get introduced too late.

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