Homestay platform Airbnb is cracking down on London users who ignore the 90-day legal limit to "remove unwelcome commercial operators".
By spring 2017 Airbnb will introduce automated limits so users will only be able to share entire home listings for more than 90 days per year if hosts confirm they have the required permission to share their space more frequently.
Iain Wright MP, chairman of the House of Commons Business, Innovation & Skills Committee, previously claimed that many landlords appeared to be illegally letting properties out for more than 90 days per year on the site. In August, a BuzzFeed investigation found that a third of London properties listed on the site appeared to be owned by professional landlords.
The Institute of Public Policy Research (IPPR) recommended Airbnb take pre-emptive action to ensure sharing of entire homes does not contribute to the London housing crisis. The research was commissioned as part of the platform's Community Compact commitment to work with cities that have identified a shortage of long-term rental housing as a critical issue.
The typical Airbnb host in London earns £3,500 by sharing their space for 50 nights a year.
A statement by Airbnb read: "We firmly believe this step will help build a better London for everyone and work is already under way to implement these measures, which will be in place by spring 2017. We want to be good partners to London and continue to lead our industry on this matter, and ensure home sharing grows responsibly and sustainably."
The British Hospitality Association (BHA), which called on London mayor Sadiq Khan to take action over Airbnb to prevent landlords from operating illegally, welcomed the news, and said it was "a welcome first step towards more structured and responsible home-sharing".
Ufi Ibrahim, chief executive of the BHA, said: "We have been calling on the government to enforce regulatory controls on home-sharing platforms and while this move by Airbnb is welcome it is important that all home-sharing platforms are similarly regulated."