Camden Council has claimed a “major victory” after Airbnb announced today that it will limit entire home listings to 90 days a year in London.

Leader of the council Sarah Hayward said the online lettings site – which allows users to rent out their home for cash – is “exacerbating” the housing crisis.

Cllr Hayward said: “Swathes of properties in Camden had effectively been removed from the longer-term rental market, making it both more expensive and difficult to find a longer-term rental property in the borough for those working here.

“It was abundantly clear to all councils involved that many users of the site were flouting the 90 nights limit and the simplest way to stop that was for Airbnb to stop it at source, rather than councils undertake resource intensive and costly retrospective enforcement operations against the culprits, working with limited data from the company.”

The American company announced that users will require official permission to let their homes for more than 90 days from spring next year.

A statement explained the move will “make it easier for hosts in London to act in the best interests of everyone in the city.”

It also said: “We know the vast majority of Airbnb hosts in London are regular people who share their homes to help them afford one of the most expensive cities in the world.

“The typical Airbnb host in London earns £3,500 by sharing their space for 50 nights a year and the Airbnb community generated an economic impact of more than £1.3 billion in London last year.”