Peckham has joined Paris, Barcelona and New York in cracking down on residents renting out their properties to tourists on Airbnb.
Southwark Council has warned locals that they are prohibited from letting their rooms or houses on a short-term basis if they are current or former council properties.
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The council sent out leaflets warning them of possible legal action.
Speaking to The Times, Southwark councillor Stephanie Cryan said: "We are aware that a growing number of leaseholders are letting their properties, on a short-term basis, through platforms including but not exclusive to Airbnb, Housetrip and Gumtree.
"As far as we are concerned our homes are homes, not hotels. We want people in our council homes and on our council estates who are a part of the community, not visitors passing through."
Earlier this month, the Daily Telegraph reported that Airbnb is pushing permanents residents out of Italian city centres and turning them into "a theme park for tourists".
A University of Siena report revealed that almost 20 per cent of Florence's housing stock is listed on Airbnb.
Stefano Picascia, one of the authors of the report, said: "Every single flat on a short-term let is one flat less in the regular long-term market."
He added that locals are being pushed out by tourism and this is affecting the character of Italy's cities.