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Best Buy to Let Areas in London: Where to Invest in Airbnb?

Last updated on January 31st, 2024

Embrace profitability & secure your cash-on-cash return while investing in the best buy to let areas in London. Learn more in this article!

best buy to let areas in london

Embrace profitability & secure your cash-on-cash return while investing in the best buy to let areas in London. Learn more in this article!

Key Takeaways

  • Thanks to the lucrative chances it provides for securing a solid return on investment, rental properties in London can allow investors to enjoy a successful business venture.
  • With the help of Airbtics, you will learn about the top locations in London that offer attractive buy-to-let opportunities.  As a bonus, we feature their recommended property types, estimated annual revenue, rental yields, and more essential data.

Exploring the Current Rental Market in London: Top Areas and Key Factors

Nestled on the banks of the River Thames, in the southeast of the island of Great Britain, we can find the capital and largest city of the UK, London. This destination is known for its cultural and ethnic diversity and also for being the world’s leading financial center.

While London stands out as a multicultural city filled with wonderful experiences, it’s also quite the catch for property investors thanks to its strong real estate market. As a matter of fact, did you know that London is among the top cities in the UK for Airbnb properties? That’s excellent news!

But before diving deeper into this investment venture, it’s important to set clear goals and analyze the market carefully to guarantee your investment success. And for this reason, it’s also essential to know where you can find the best property investment opportunities in London

In this article, we feature the best buy to let areas in London and mention some of the main reasons why you should consider investing in property in this city. Keep reading and find out more about this market!

Why invest in London: Top reasons to buy a property investment

While London’s real estate and rental markets are highly appraised for their solid demand, it’s still crucial to analyze the city’s situation. For this reason, knowing what kind of advantages your target city can offer to real estate investors is important.

Check out some of the reasons why should you consider doing real estate investment in London:

  • Top Airbnb City in the UK

London is known for having one of the strongest and most profitable rental markets in the UK. This is the result of attracting a large number of people who are looking to live, work or study in the city. Thanks to this, there’s a steady demand for housing and rental properties that makes the London real estate market active. Moreover, considering the high property demand and shortage of available land in the city, investing in real estate here can generate a good long-term return to investors through property value appreciation.

On top of that, London ranks high when it comes to UK’s most profitable Airbnb cities since it’s one of the top buy-to-let locations! Investors aiming to list a property in London can expect a high Airbnb occupancy rate & annual revenue as well as attractive rental yields.

  • UK’s economic powerhouse

London is known as a global financial & commercial hub and is regarded as the UK’s economic powerhouse, housing some of the world’s leading companies. Furthermore, the city is a leading tourist destination in the world, being quite famous for its cultural institutions, such as the British Museum, the National Gallery and the Natural History Museum. Thanks to this, the city enjoys a stable and solid economy that opens the doors to a wide range of employment opportunities.

  • Superb living conditions 

We can’t deny that London is quite the catch with its unparalleled work, cultural and entertainment opportunities! This cosmopolitan city features an excellent quality of life and a wide variety of enjoyable experiences, making it an attractive place to live for many. London offers a high-quality educational system and is home to some of the best universities in the world. Moreover, the city presents an efficient transport network and an excellent healthcare system.

And while the living conditions in London are amazing, it should also be considered that it’s an expensive city, which means that its housing market may not be that affordable. For this reason, investors with a limited budget may find it difficult to come across cheap properties in this city.

  • It never gets boring!

Looking for a city in which is impossible to get bored? Then we welcome you to London! But first, we should mention that there’s a 100% guarantee that you will fall in love with this city of endless possibilities. The city has a rich and fascinating history that is reflected in its impressive and well-preserved architecture! 

There’s no lack of museums, theaters, galleries, and shops as well as exhibitions and cultural events that are hosted throughout the year. Additionally, there are plenty of parks and green spaces scattered across the city that offer a break from the urban hustle and bustle. In fact, London presents varied entertainment options for all tastes and ages.

On top of that, London welcomes a high influx of overnight visitors from all over the world yearly, which increases the city’s attractiveness for property investments

Is Airbnb profitable in London?

Thinking about operating an Airbnb listing in London to achieve the desired financial freedom? It’s, indeed, a great idea and Airbtics confirms that you can earn a nice passive income by doing so since London is one of the top 3 Airbnb locations in London! Thus, investors like you can expect that an investment property in London, UK can be a success.

If we dive a little more, we can find that Airbnb hosts can earn a potential revenue of £152,754 with a median occupancy rate of 85% for operating a 2-bedroom apartment in London as confirmed by Airbtics’ data.

On the other hand, it’s also essential to know about the Airbnb regulations in London if you’re aiming to host guests in this city. By doing so, you will determine what necessary measures you should take to prevent conflicts with the law. 

Source: Airbtics Dashboard

Where to Buy Property in London for Investment?

While searching for a location to set up your Airbnb listing in London, you may become aware of how big the city is and that there are many neighborhoods! Hence, it can become a challenge to choose the right area, especially if we consider that the profitability of each neighborhood will differ. So, you may be wondering where should you invest in a rental property in London, right?

Let us lend you a hand – Go ahead and check out the best areas for Airbnb in London:

airbtics-logo-300x87
Best Area Airbnb Listings Best Number of Bedrooms Median Property Price Airbnb Annual Revenue GRY
South Bank 302 2 bedrooms £925,000 (2 BR) £77,637 8.39%
Camden Town 449 2 bedrooms £825,000 (2 BR) £66,481 8.06%%
Whitechapel 701 2 bedrooms £695,000 (2 BR) £61,488 8.85%
Westminster 398 1 bedroom £575,000 (1 BR) £59,431 10.34%
Central Hackney 611 2 bedrooms £550,000 (2 BR) £56,408 10.26%
Greenwich 522 2 bedrooms £635,000 (2 BR) £54,318 8.55%
Shoreditch 285 1 bedroom £545,000 (1 BR) £50,600 9.28%
Tottenham 373 2 bedrooms £475,000 (2 BR) £38,166 8.03%
Stratford 544 1 bedroom £425,000 (1 BR) £35,496 8.35%
Finsbury Park 419 1 bedroom £389,000 (1 BR) £33,926 8.72%
  • Total Number of Airbnb Listings: 302
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): £925,000
  • Airbnb Annual revenue: £77,637
  • Gross rental yield: 8.39%
  • Total Number of Airbnb Listings: 449
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): £825,000
  • Airbnb Annual revenue: £66,481
  • Gross rental yield: 8.06%
  • Total Number of Airbnb Listings: 701
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): £695,000
  • Airbnb Annual revenue: £61,488
  • Gross rental yield: 8.85%
  • Total Number of Airbnb Listings: 398
  • Best bedroom size: 1 bedroom
  • Median property price (1 bedroom): £575,000
  • Airbnb Annual revenue: £59,431
  • Gross rental yield: 10.34%
  • Total Number of Airbnb Listings: 611
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): £550,000
  • Airbnb Annual revenue: £56,408
  • Gross rental yield: 10.26%
  • Total Number of Airbnb Listings: 522
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): £635,000
  • Airbnb Annual revenue: £54,318
  • Gross rental yield: 8.55%
  • Total Number of Airbnb Listings: 285
  • Best bedroom size: 1 bedroom
  • Median property price (1 bedroom): £545,000
  • Airbnb Annual revenue: £50,600
  • Gross rental yield: 9.28%
  • Total Number of Airbnb Listings: 373
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): £475,000
  • Airbnb Annual revenue: £38,166
  • Gross rental yield: 8.03%
  • Total Number of Airbnb Listings: 544
  • Best bedroom size: 1 bedroom
  • Median property price (1 bedroom): £425,000
  • Airbnb Annual revenue: £35,496
  • Gross rental yield: 8.35%
  • Total Number of Airbnb Listings: 419
  • Best bedroom size: 1 bedroom
  • Median property price (1 bedroom): £389,000
  • Airbnb Annual revenue: £33,926
  • Gross rental yield: 8.72%
Explore More Profitable Locations around London!

How to Find the Best Locations for Buy to Let Properties?

It might take a lot of time to identify viable rental markets, and we understand how valuable the investor’s time is. For this reason, it’s a great idea to make use of the advanced resources available to property investors to hasten this process.

On top of that, you should also consider visiting real estate forums or doing a throughout research in search engines to find out which locations are drawing the investors’ attention in specific countries. This will also help you to sort your list and have a clear idea of which cities to focus on. Plus, we encourage investors like you to make use of analytics tools to find profitable markets to invest in Airbnb, particularly those that can provide dynamic data.

Imagine exploring a city while getting useful info that can make things easier for you, it sounds like a dream come true, right? It’s possible with Airbtics Dashboard since you can get a reliable dataset that will show you metrics like the average revenue, occupancy rates, nightly rates, and seasonality, among others.

But don’t take just our word for it, go ahead and take a look at Simon, an Airbtics customer, who was led to a new Airbnb market that generated more profitability than his previous one!

best places to buy to let glasgow

But, it can happen that your target area is not appearing in the search results, but don’t worry! You can easily create your own custom market.

Now, that you have a better view of your target market, go ahead and play around with the filters and find the results that fit your needs. You can use filters to find out what type of property offers the most attractive profit in your preferred area. 

The best part of using dynamic data is that by moving and zooming in and out of your map, the data will also change accordingly!

best places to buy to let glasgow

This process can now be repeated until you decide what type of property would be a good investment in your target city or neighborhood. Compare data between different property types and you find out the option that suits you the best! 

Set sails and experience a rewarding investment journey

To sum up, it’s undeniable that London owns a profitable and solid rental market that features a wide range of buy-to-let opportunities and locations. Thus, if real estate investors list their properties on Airbnb, it could result in a lucrative financial experience. 

And now that you have a better overview of the best buy-to-let areas in London, you should take the next step and continue your research. Make smart investment decisions and set better strategies by using reliable tools such as Airbtics’ Airbnb calculator.

However, just a final note, investors with a limited budget may need to think twice before investing in London as its real estate market is not as accessible as in other cities. This is why we recommend you not rush into making a decision yet because there are still many profitable cities to discover!

Pro Book

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Find unsaturated neighborhoods with the highest occupancy history.

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