Southwark Council is considering taking enforcement action against leaseholders of former council homes who rent their properties out to short-stay guests via websites like AirBnB.
The issue of AirBnB was raised by Cllr Samantha Jury-Dada at Tuesday night's meeting of the borough's housing and community safety scrutiny sub-committee.
She asked Cllr Barrie Hargrove, cabinet member for communities and safety, to comment on the council's stance on the use of homes in the borough for short-stay accommodation.
"There has been some discussion among our legal team that we may be able to enforce against council leaseholders who let their properties out to AirBnB because actually it may well be against the terms of their lease," said Cllr Hargrove.
Cllr Hargrove said he had been "astonished" by the case on the Rockingham Estate reported by the SE1 website last month where an AirBnB host is seeking planning permission for temporary change of use.
"I've worked it out that letting your property out all year round via AirBnB you could earn around £36,000 a year," added Cllr Hargrove.
"It seems to be a growing problem in our borough and I know that the lawyers are looking at it very carefully."