Landlords have welcomed a decision to ban Airbnb hosts from renting out entire homes in London for more than 90 days without a proper licence.

The company agreed to take responsibility for policing limits on the number of days per year a full unit can be let through its peer-to-peer system in London and Amsterdam, in a deal agreed this week.

The short-term rental company has been involved in bitter disputes with city authorities across North America and Europe, where critics claim it is creating significant problems with the long-term rental market.

The Residential Landlords Association (RLA) has led a campaign to reform the rules governing the company which enables people to list or rent short term lodging in residential properties.

RLA policy director David Smith said: “Whilst we have no problem with websites like Airbnb, all we want is for the laws as they stand to be properly enforced.

“The decision by Airbnb to better police its website is welcome news which will provide greater protection for those using the site and will not allow property owners to try to do long term renting on the cheap.”

Research conducted by the RLA found 61 per cent of homes and apartments listed on the site in London were advertised as being available for more than 90 days per year.

By June this year, surveys found there were 42,000 Airbnb listings in the capital alone – a 27 per cent increase in three months – advertising the same availability.

A spokesman said: “Our main concern was that some property owners may be using holiday letting sites as a way of providing long term accommodation without having to abide by all the regulations, safety and insurance provisions covering the private rented sector.”