A local authority in Manchester is pioneering a ban to prevent buyers of homes at a new development from selling them to private landlords, or promoting them on short-let platforms like Airbnb.

A regeneration project in the Brunswick area of the city will have 500 new homes – some council properties but the majority for private sale – but the buyers must sign a covenant saying they will not short-let them.

The council says: “Well-managed short-term lets in appropriate areas of the city can be positive when they offer tourists or business travellers an alternative option for accommodation. However, it is recognised that poorly managed properties can negatively impact the host community.

“The city council is now using Brunswick as the blueprint to ensure family homes in similar key regeneration areas are not lost to the investor market or short-term lets, helping to protect and build a long-term community of people.

“To ensure these homes remain in the hands of Manchester residents, strict covenants are in place that prevent properties being sold to private landlords who would likely turn the properties into short-term lets or make available as student homes (Houses of Multiple Occupation), given the close proximity to the city’s universities.”

In addition, the sales team of the developer – S4B – will initially market properties to local people before advertising them on the open market.

Councillor Suzanne Richards, Manchester city council’s executive member for housing and regeneration, says: “Given the close proximity to the city centre and to the city’s universities, Brunswick is a target for the investor and short-term lets market, so it’s vital we do what we can to protect the community from being broken up by private landlords.”

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