HOMEOWNERS in Edinburgh are preparing for a cash windfall as they open their doors to festival-goers for the summer.

Residents in the capital have been cashing in on the demand for accommodation during the festivals for decades, with some vacating their family home every August and handing it over to short-term tenants.

But this year, more than ever are making money from their spare rooms or renting out their entire homes using the digital platform Airbnb, which cuts out rental agencies and undercuts hotels.

Around 9,000 properties in Edinburgh are listed at any one time on the Airbnb website and the average price in the capital is £129 a night, typically netting owners around £3,900 a year.

However, demand is said to be so high next month that only five per cent of their listings are still available during the festival next month.

Some people have raised concerns that Airbnb is unregulated and is ruining the capital for residents who suddenly find themselves living next to an ever-changing stream of strangers instead of ordinary neighbours.

Edinburgh City councillors have also highlighted concerns over noise and nuisance, safety, and the over-concentration of Airbnb properties.

Meanwhile, the city’s hoteliers have voiced their concerns about the newcomer.

Willie Macleod, executive director in Scotland for the British Hospitality Association, said: “This is not a new phenomenon – people have always rented rooms out unofficially during the festivals.

"What is new about Airbnb and similar outfits is that they are online platforms that create a market, and one that is increasing. But now there are landlords with multiple properties who effectively operate like dispersed hotels.

“While we are not afraid of competition, what we are concerned about is the unregulated nature of Airbnb and similar organisations, and their lack of transparency. It comes down to unfair competition, as Airbnb properties don’t have to abide by change of use planning laws, fire, food safety, health and safety regulations, or pay business rates.

“Edinburgh is well served by hotels and most have a 99 per cent occupancy rate during the festivals, so we are not threatened by Airbnb. But we are concerned about its unregulated nature and would like to see a register of Airbnb landlords.”

Tourism chiefs acknowledge Airbnb is a useful way to bring visitors from all over the world to Edinburgh but joined in warning users to do their research.

Malcolm Roughead, chief executive of VisitScotland, said: “Airbnb is a popular website, known to visitors worldwide and it’s great to see this community marketplace growing.

"The global reach of this renowned brand brings significant benefits to Scotland in terms of increased business and profile.

“We would also encourage visitors to ensure that they carry out full research on accommodation providers before booking to check on quality and adherence to safety regulation.”

In recent years, as Airbnb has become more popular, an increasing number of homes in Edinburgh have opened up to strangers. Airbnb has pointed out that of the three million listings worldwide, there are more than 6,000 listed in the city with nearly 55 per cent rented as entire homes.

The online service enables people to rent their homes as short-term accommodation in cities across the world – and Edinburgh is a particularly popular destination during the festivals.

The idea was launched in 2008 and is now available in 191 countries, including China, and in more than 65,000 cities.

Airbnb has become such an accepted face of holiday lets that it is worth around £1 million a day to the Scottish economy with more than 800,000 people using the service last year.