Government poised to embrace the Airbnb economy

Mr Hancock is tomorrow expected to launch an independent review into the sharing economy, as he outlines his commitment to make the UK the global centre for this relatively modern form of transaction before the end of the next Parliament.

It is estimated that 25pc of UK adults are sharing in some way online, with global annual revenues estimated to rise from £9bn today to £230bn by 2025.

The review will be chaired by Debbie Wosskow, chief executive of Love Home Swap, the world’s biggest home exchange club. She will look at defining the concept of the sharing economy, and the potential benefits to the UK economy, as well as the threats it may pose to traditional industries.

The review is in stark contrast to the reaction of other geographies to this new form of capitalism.

In New York, for example, Airbnb has faced accusations from the hotel lobby of facilitating a grey market in “illegal hotels” that circumvent taxes and make it more difficult for locals to find affordable rental property. The company faced the same opposition in San Francisco, the city in which it was founded.

Ms Wosskow, who is due to produce the report ahead of the Chancellor’s Autumn Statement in early December, will also look at the regulatory burdens faced by companies trying to profit from the sharing economy, and key issues such as insurance and other business barriers.

Confirming the review to The Sunday Telegraph, Mr Hancock said: “These new business models put money into households the length and breadth of the country. I want to make sure that the UK is front and centre of that, competing with San Francisco to be the home of these young tech start-ups.”

Olivier Grémillon, head of Airbnb in Europe, commented: “The sharing economy is a phenomenon with the potential to transform almost every aspect of our lives. We welcome all steps by the Government to create progressive frameworks and partnerships that can unlock this potential in the UK.”

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