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Top 10 Profitable Airbnb Locations in the UK

Top 10 Profitable Airbnb Locations in the UK: Learn about the top 10 most profitable Airbnb locations in the UK and how to calculate your potential revenue!

Top 10 Profitable Airbnb Locations in the UK

Profitable Locations UK

Top 10 Profitable Airbnb Locations in the UK

Learn about the top 10 most profitable Airbnb locations in the UK and how to calculate your potential revenue!

If you are looking for the best city & area to invest in the UK this summer season, continue reading! In this article, we’ll feature the top 10 most profitable Airbnb cities in the UK along with important key metrics including occupancy rates, annual revenue, average daily rates (ADRs), domestic and international travel origins, and so much more!

Airbnb’s Trending Summer Destinations

Have you heard the news? Airbnb’s summer travel trend indicated all the profitable cities that Airbnb guests have booked this summer until August 31st, 2022! According to their recently released article, Airbnb guests have already booked in 72,000 different cities and towns for the entire summertime.

Since the pandemic started, remote workers from all over the world have had immense flexibility to take their work with them while they are at their preferred travel destination. This is why Airbnb occupancy rates in digital nomad cities have been popular since remote workers have rapidly increased over time! 

Airbnb hosts in the UK have made their way to maximize their profitability in 2022. In fact, Airbnb news declared that remote hosts have earned over £4,500 in the last summer. 

According to Airbtics, hosts in the UK can expect an average monthly revenue of £2,414. To be more specific, we’ve taken a look at Hornsea, the top seaside destination in the UK in 2022. Airbtics’ data also shows that a 1-bedroom property in Hornsea can generate £19,647 annually. 

But where is the most profitable city for Airbnb in the UK?

In this article, we’ll reveal the top 10 profitable Airbnb areas in the UK, along with some expert tips on how to become a successful host. Continue reading to learn more!

Can I Start an Airbnb Business in the UK?

The simple answer is YES! There are certain Airbnb startup costs that you have to be prepared for. You can start an Airbnb business with two options:

1. Purchasing a Property

If your loans and budget are in line with your target property price, we still recommend you run the numbers. Owning a property can be an exciting journey, but it can also drain the money in your bank! 

Before you purchase a property, it’s practical to use an Airbnb profit calculator to make an in-depth analysis. This does not solely predict a property’s profitability. But it also gives options to look at undervalued properties that can turn into excellent investments. If you need a mortgage to purchase your Airbnb, you can also use these calculations to gauge how much you can borrow towards your purchase, as the projected rental income can be included in the affordability.

2. Rental Arbitrage

This option is highly recommended for investors who want to test the waters first! Do you have a limited budget but endless dreams to make passive income? Then rental arbitrage might be the best choice for you.

Rental arbitrage is a process of subletting properties (as allowed by landlords) for the sole purpose of Airbnb. While it’s a challenge to find landlords that allow this, there are several forums that you can participate in to find one!

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Top 10 Profitable Airbnb Locations UK

1. London 

Home to the famous Big Ben and Buckingham Palace, London is one of the most profitable Airbnb cities in the UK. Visit Britain confirms that this city welcomed over 7.4 billion tourists in 2022! Check out the Airbnb data in London:

  • Average Property Price (1-bedroom): £1,074,076
  • Airbnb Annual Revenue: £25,038 
  • Gross Rental Yield: 2.33%

Check out other London rental market trends to target the right location!

2. Sunderland

Sunderland is not only known for its electronic and motor manufacturing, but also for its low cost of living! This city was marked as the third most affordable city in the UK by Prospects Luminate in 2021. Here is the Airbnb data in Sunderland:

  • Average Property Price (1-bedroom): £157,344
  • Airbnb Annual Revenue: £13,623 
  • Gross Rental Yield: 8.66%
3. Glasgow

Recognized by UNESCO as the City of Music, Glasgow is certainly known for its music, arts, and architecture. The Glasgow Government has also noted more than 3 million tourist arrivals every year! Discover the Airbnb data in Glasgow:

  • Average Property Price (1-bedroom): £199,181
  • Airbnb Annual Revenue: £22,803
  • Gross Rental Yield: 11.45%
4. Newcastle

Newcastle upon Tyne takes you back to Britain’s medieval past – which is why it’s a favorite! Aside from its wondrous castles and bridges, this city offers great investment opportunities. Here is the Airbnb statistics in Newcastle:

  • Average Property Price (1-bedroom): £106,799
  • Airbnb Annual Revenue: £21,755
  • Gross Rental Yield: 20.37%
5. Nottingham

This beautiful cosmopolitan city is known for its class shopping and cultural art scene. If you’re looking to invest in a city with various student investment properties, Nottingham is highly recommended! Check out the Airbnb data in Nottingham:

  • Average Property Price (1-bedroom): £137,199
  • Airbnb Annual Revenue: £19,022 
  • Gross Rental Yield:  13.86%
6. Blackpool

The annual visitors to Blackpool have remarkably increased in 2022. INews UK states that this city has welcomed over 5.1 million visitors from Jan-Feb alone! Some of its popular attractions are Sandcastle Park and Blackpool Tower. Here are the recent Airbnb statistics in Blackpool:

  • Average Property Price (1-bedroom): £74,295
  • Airbnb Annual Revenue: £17,053
  • Gross Rental Yield: 22.95%
7. Sheffield

Sheffield is not only the home to the oldest football club in the world, but also to its vast green spaces. Some of its most popular tourist attractions are the Botanical Gardens and Tropical Butterfly House. Check out the Airbnb data in Sheffield:

  • Average Property Price (1 bedroom): £222,373
  • Airbnb Annual Revenue: £20,810
  • Gross Rental Yield: 9.36%
8. Belfast

If you’ve ever watched and idolized the film Titanic, then you’ll understand why Belfast welcomes more tourists every year! Belfast is the capital city of Northern Ireland and offers several investment opportunities. Discover the recent Airbnb findings in Belfast:

  • Average Property Price (1-bedroom): £109,052
  • Airbnb Annual Revenue: £26,366
  • Gross Rental Yield: 24.18%
9. Cardiff

Looking to invest in a property surrounded by castles? Cardiff is the best city to do so! Its Victorian & Edwardian architecture is certainly some of the tourists’ faves. Here is the Airbnb data in Cardiff:

  • Average Property Price (1-bedroom): £291,255
  • Airbnb Annual Revenue: £22,662
  • Gross Rental Yield: 7.78%
 10. Edinburgh

Last but not least – the beautiful Edinburgh. Known for its UNESCO World Heritage sites and festivals, this city is a favorite destination for cultural pursuits and families. Check out the recent Airbnb statistics in Edinburgh:

  • Average Property Price (1-bedroom): £215,402
  • Airbnb Annual Revenue: £39,784
  • Gross Rental Yield: 18.47%

How to Become an Airbnb Host UK?

You can become an Airbnb host in the UK by registering at this link. Considering you’re passed the next step: local Airbnb laws, necessary requirements, and running the numbers. So what’s next? The next step is to prepare your room for hosting! When starting an Airbnb business in the UK, it’s ideal to create a full list of essentials. 

Before you list your space on Airbnb, here are a couple of reminders to ask yourself:

  • What do you need to beautify the space? 
  • What amenities will you offer that your competitors don’t?
  • How will you promote and strategize to get bookings?
  • How will you set your pricing strategy to earn more profit?

Top 3 Expert Tips for Starting an Airbnb Business in the UK

Whether you’re a beginner or a pro in the industry, each expert tip is a must-know! Here are the top 3 tips when starting an Airbnb business:

1. Run the Numbers

We mentioned the essence of running the numbers – but how? Using an Airbnb analytics tool, you can get accurate data for your target city. Not only will you predict profitability, but also price better by spying on your competitors.

2. Highlight your Unique Selling Points

Let’s imagine that all of your competitors in the area have outdoor pools. Since these are widely adored by guests, maybe you can step up the game by having an outdoor jacuzzi! 

Highlighting your property’s unique selling points will not only bring you more bookings but stand out from the rest.

3. Think Like a Guest

If you were to see your listing on Airbnb, would you book it? Why or why not? Looking from a guest’s perspective will certainly help you leverage your game and consider improving.
For instance, if the photos in your property are blurry and have limited descriptions, you might be discouraged as a guest. So you can learn how to take the best Airbnb photos or hire a professional photographer!

Summary

Now that you have a complete picture of the top profitable Airbnb locations in the UK, don’t stop there! Knowing the most profitable Airbnb cities is not enough as the data may vary if you want to target a specific neighborhood. Using an Airbnb income calculator, you can compare markets in real-time, spy on your competitors within the area, and make the best investment decision.

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Case Studies

Is Airbnb profitable in the UK?

Is Airbnb profitable in the UK?

Is Airbnb profitable UK

Is Airbnb profitable in the UK?

Find out if Airbnb is profitable in the UK and discover the top 3 cities that can generate the most revenue!

Airbnb in the UK can certainly generate a whopping profit. In fact, Airbnb News recently confirmed that a typical host can earn over £6,000 in the UK. Since there’s rising inflation, more than a third of Airbnb hosts rely on hosting to afford the increasing cost of living. 

But how much Airbnb profit (UK) can hosts earn? Airbtics’ data reveals that hosts in the UK can expect to earn an average daily rate of £173 and can achieve an average occupancy rate of 55%. 

Do you want to discover the top-performing cities in the UK that can generate the most profit? Continue reading to learn more!

Is Airbnb profitable in the UK?

Yes – Airbnb is certainly profitable for hosts in the UK. This depends on several factors such as the location, property type, seasonality, and occupancy rate among others. Here are the top 3 Airbnb cities in the UK:

1. London 

Known as the capital city of the United Kingdom, the rental demand in London is certainly strong, allowing it to be one of the most profitable cities for Airbnb. It is commonly known for being the financial district, but also for its cultural and economic success. Here’s what you can expect when starting an Airbnb in London:

  • Average property price in London: £542,311
  • Seasonality: 45% – Highest revenue (£2,423) in July 
  • Average daily rate in London: £99
2. Manchester 

Considered the capital of the North, Manchester is known for being the best place for starting a business in Britain. This city is the largest metropolitan area in Northern England and offers plenty of investment opportunities! Check out the Airbnb data in Manchester:

  • Average property price in Manchester: £220,000
  • Seasonality: 34% – Highest revenue (£1,690) in July 
  • Average daily rate in Manchester: £92
3. Leeds

Leeds is the largest city in Yorkshire and is known for being the administrative centre. With over 29 million annual visitors, Leeds is certainly one of the fastest-growing cities in the UK! Discover the Airbnb statistics in Leeds:

  • Average property price in Leeds: £272,000
  • Seasonality: 37% – Highest revenue (£1,752) in July 
  • Average daily rate in Leeds: £87

Reasons for Airbnb Investment in the UK

Buying an investment property in the UK requires running numbers and thorough analysis – it comes like bread and butter! Check out the top 5 reasons why Airbnb investment in the UK is an excellent choice:

1. Expect Higher Returns

To generate higher returns, you have to choose the right property type and target the right market. In comparison to long-term rentals, short-term rentals can be a lot more profitable because you can adjust your pricing accordingly.

2. Growing Market in the UK

Despite the pandemic, the UK has one of the fastest-growing markets across the globe. In fact, there’s no slowing it down! Airbnb news recently declared the best 10 Airbnb cities in the UK which are the trending travel spots for domestic travel.

3. Holiday Home for Personal Purposes

Do you want to be an owner of a holiday home while drinking tea and earning money? This is your go signal to do so. You can easily block off some dates in your Airbnb calendar if you want to invite some friends over. This is one of the perks of investing in a property!

4. Mortgage: Paid!

The majority of first-time investors are worried about not being able to pay mortgages on time. Once your Airbnb property generates enough revenue, you can stop worrying about paying mortgages.

Pro tip: You can even start considering your 2nd property once the mortgage payments have been set aside!

5. Lucrative than Traditional Lets

Generally, a fully booked Airbnb property can be more fruitful than traditional lets. How so? To put it simply, a long-term tenant is required to pay a fixed monthly rate. However, Airbnb guests can be charged more on a nightly basis depending on seasonality.

What to Expect: Airbnb hosting in the UK

Excited to become an Airbnb host in the UK? Here’s what you can expect:

  • Is it legal to operate? What are the requirements & local laws?

Local laws are the first major consideration before operating any business. The UK government usually implements A certain number of days for an Airbnb host to rent out their property. And this specifically varies depending on your particular city. Some cities will require registration and permit, and otherS have zoning restrictions. 

For instance, hosts are allowed to operate for 90 days without a permit, according to Airbnb rules in London. If you’re planning to operate for more than 90 days, it’s required to get a planning permit. 

  • Does your leasehold contract allow Airbnb?

Before purchasing a property in the UK, it’s important to go through the contract in detail. If it’s too complicated to understand, you can always ask for help from real estate agents or an attorney to get better insights. 
But the major task is to find out whether your leasehold contract allows Airbnb. 

Otherwise, there’s not really much you can do! It’s somewhat difficult to find a landlord that allows Airbnb as they are worried about possible damages to their property.

  • Mortgage restrictions 

If your property has a mortgage or any form of loan, it’s best to double-check with the lender. This is to make sure that there aren’t any restrictions on subletting or hosting – before you even begin!

  • Government’s Rent-a-Room Law

Have you ever heard of the Rent-a-room scheme in the UK? Hosts who earn less than £7,500 can opt into this scheme. The best part is it’s TAX-FREE! By simply letting a spare room or your whole home (furnished), you can let out your property without limitations.

Conclusion

Now that you have an overview of your potential Airbnb revenue in the UK, it’s time to stand out among the rest. By using an Airbnb profit calculator UK, you can accurately identify the most profitable area to do Airbnb. Not only will you be able to find the best areas with the highest average Airbnb income in the UK, but to go through historical data to predict long-term profitability!

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Airbnb Rules All About Airbnb

London Airbnb Rules

London Airbnb Rules is a complete guide that will provide you with an overview of the guidelines and get you started on your journey!

London Airbnb Rules

london airbnb rules

London Airbnb Rules

London Airbnb Rules is a complete guide that will provide you with an overview of the guidelines and get you started on your journey!

Is Airbnb legal in London?

Don’t worry, Airbnb is legal in London! London is the capital city of England & the United Kingdom. Known as one of the most visited cities in the world, Airbnb is legal in this city and the government allows Airbnb hosts to run a short-term rental in a residential area for 90 days a year. 

Currently, there are 10,053 Airbnb listings in London, with 46% of entire houses earning up to £3,941 a month. The Average Occupancy Rate in London is 80% and the average daily rate is £97. According to vacation rental market data source Airbtics, a 2-bedroom apartment in London can make up to £55,626 each year. Discover how much you can make in other major cities by checking their UK rental market statistics!

london airbnb rules
Short-term rentals policy in London
  • Allowed to operate for 90 days (without a permit) similar to Manchester
  • There is NO limit on renting out a portion of your home as long as you live there
  • Hosts are liable to pay council tax
  • A planning permit is necessary for more than 90 days of rent
Short-term rental policy in the UK 
  • The letting must NOT be for longer than 31 continuous days. A period of longer than 31 days is deemed to be a ‘long’ stay.
  • The let property needs to be made available for rent for at least 210 days in a tax year.
  • The rental needs to be actually let for at least 105 days of that tax year, for periods shorter than 31 days at a time.

Embrace Airbnb profitability by investing in the best areas to invest in property London

Pros and Cons of running Airbnb 

Short-term rentals are vacation rental properties rented out on a short-term basis to guests, like hotels.  This form of rental helps guests to feel more at ease and “at home” because the properties are typically designed in this manner.

A long-term rental is the most common sort of rental property utilized for residential purposes. This sort of rental property is usually protected by a long-term lease agreement with more binding terms than a short-term rental. Renting out their homes for a higher price than their mortgage allows them to generate regular income regardless of the market. Because it is more traditional and well-known, most people are more familiar with this sort of rental property.

airbnb rules

Now that we’ve defined vacation rentals and long-term rental properties, let’s look at each component of rental properties that explains both the benefits and drawbacks of a short-term or long-term rental.

Pros

1. Flexibility – You have the option of renting for days, weeks, or months. You can rent as much or as little as you want. There’s also the possibility of going on a trip at any time and earning money while doing so!

2. Privacy – Short Term Rentals are ideal for families. They provide guests with more privacy and space than standard hotels.

3. Earns more money than a long-term rental – It’s simple to calculate: £1500 for a vacation week vs. £1500 per month to rent for a year.

4. Good Deductions – There are numerous popular deductions available to rental property owners. Cleaning and maintenance, insurance, management fees, and utilities are just a few of the costs to consider. You may make a loss and avoid paying taxes entirely if you take enough deductions.

5. Tax Breaks – Short-Term Rental Owners receive the best home-related tax breaks.

6. Less Wear and Tear on the Property – With frequent renters, you can keep up with tiny repairs before they become major issues!

7. Social Advantages – There are a lot of interesting people in the world, and many of them travel! Your next acquaintances in a Short Term Rental could evolve into lifelong buddies!

Cons

1. Inconsistent payments – If you rely on a stable income, a yearly renter is a much safer option. There’s a chance you won’t have a Short Term Renter for weeks or months.

2. Must cover the utilities – Utility costs are usually paid by long-term renters. Short-term tenants don’t.

3. Increased risk – There is a higher danger of theft, breakage, or problem tenants because of the number of tourists going through your doors.

4. Requires extra effort – Running a Short Term Rental requires more effort because you are the innkeeper. You’ll be in charge of collecting money, scheduling clients, and bringing in tenants. You’ll do it every week instead of every 5 years or so!

5. Additional maintenance expenses – As the landlord, you are responsible for housekeeping, pool maintenance, and general upkeep. Not always the case with a long-term renter.

6. Some HOA – Managed neighborhoods make it tough and complicated to rent short-term Rentals. People prefer comfortable, peaceful surroundings where they feel safe and know everyone, rather than random strangers coming and going at all hours. They may submit complaints, and some HOAs may sue Short Term Rental Owners.

Conclusion

If you’ve made it this far, you’re thinking of starting an Airbnb.

We’ve been assisting folks like you, who are first-time Airbnb hosts. We don’t provide consulting since we aren’t experts in running Airbnb businesses; but, we do provide useful data to Airbnb hosts.

You may use the Airbtics dashboard to figure out how much money you can make doing Airbnb in your city. Unlike other online Airbnb income calculators, it will provide you with a lot more useful information, such as 

  •  which neighborhood to target,
  • which amenities are in high demand,
  • what is the market’s historical performance,
  • what are the occupancy rates of a two-bedroom house,
  • should I do a two-bedroom house or a three-bedroom house? 

Well, if you are new, there are many Airbnb host communities on Facebook. Type “Airbnb host” in the Facebook search, you’ll see plenty of active communities where you can get help from experienced Airbnb hosts.

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Guides

The Ultimate Guide to Buying an Investment Property in United Kingdom

Purchasing a property investment in the United Kingdom is a complex task and requires a lot of analysis. In this article, we’ll feature the various kinds of mortgages in the United Kingdom, the timeline of purchase, upfront & ongoing costs of investment property, taxes, and other legal fees that you should consider. Learn how you can strategize property investment in the UK & make an informed decision!

Repayment mortgages 

This type of mortgage means that you pay back a small part of both the loan and the interest each month until it is paid off at the end of the mortgage term. You will need to set the amount of money that you want to borrow and the number of years that you want to borrow it for (the term of the mortgage). 

Interest only mortgages

With an interest only mortgage, you only pay the interest on the loan monthly and then pay the remaining lump sum at the end of the mortgage term. Compared to a repayment mortgage, your monthly mortgage payments will be lower however it’s important to know that since the actual loan size is not shrinking over time (you’re only paying the interest), in the long run you will end up paying more. 

Fixed rate mortgages 

With a fixed rate mortgage, as the name suggests, you pay a fixed rate of interest for a set term, typically ranging from two to ten years, or sometimes even longer. This can provide valuable peace of mind, as your monthly mortgage payments will be the same every month, regardless of whether or not interest rates increase on the wider market. The downside is that if interest rates fall, you will be locked into your fixed rate deal.

Variable rate mortgages

If you have a variable rate mortgage, this means that your monthly payments can go up or down over time. Most lenders will have a Standard Variable Rate (SVR), which is the rate charged when any fixed, discounted or other type of mortgage deal comes to an end. 

There are usually no Early Repayment Charges (ERCs) if you want to switch away from your lender’s SVR. Here are the following types of variable rate mortgage:

  • Tracker mortgages – move directly in line with another interest rate – normally the Bank of England’s base rate. This means that when the base rate goes up, your mortgage rate goes up by the same amount, and when it goes down, your mortgage rate goes down.
  • Discounted rate mortgages – This is a discount off the lender’s standard variable rate (SVR) and only applies for a certain length of time, typically two or three years. It’s worth noting that just because a lender is offering a big discount, it may not make their mortgage the best deal. SVRs differ between lenders, so there might be a better rate out there without a discount.
  • Capped rate mortgagesthis means your rate moves in line with the lender’s SVR. They have an interest rate cap which means that the rate can’t rise above a certain level.

 How does a first-time buyer mortgage work?

  • You have to deposit at least 5% of the property’s value 
  • If it’s your first time to own a residential property in the UK, it’s worth considering what your Loan to Value (LTV) will be. Your LTV is the ratio between the amount of the loan you take out and the value of your property as a whole
  • You can apply for a joint mortgage, however, both applicants must be first-time buyers.
  • For non-UK residents, you can apply and take a look at Residential and Buy-to-let rates.

Finally, the rates of first time buyer mortgage differ depending on your preferred bank. Here are some of the examples of banks that offer various interest rates:

  • Barclays’ first time buyer rates usually ask for 10% of the amount you want to borrow as a deposit – but some of our mortgages are designed to help if you’re struggling to save up that amount. You could also apply for a mortgage with a minimum 5% deposit using the mortgage guarantee scheme.
  • HSBC’s first time buyer rates have indicated various rates. On the other hand, the lowest interest rate is 3.19% fixed for a 2-year fixed standard mortgage rate.
property investment in United Kingdom

Relatively, you can also check and compare the first time buyer mortgages in the UK according to your preferred buyer type:

first-time buyer mortgages

 How does Buy to let mortgage work?

  • You’ll need a minimum 25% deposit for a buy-to-let mortgage, although it can vary between 20-40%.
  • A buy-to-let mortgage is a mortgage loan specifically designed for the purpose of purchasing a property to rent it out.
  • The majority of Buy to Let mortgages are interest only. This means that the monthly repayments will only pay off the interest, not the amount owed on the mortgage (known as capital).

In addition to this, you can easily calculate how much you can borrow using a buy to let mortgage calculator based on your expected rental income.

property investment in United Kingdom

Cost of Investment Property

Once you have familiarized yourself with the kinds of mortgages, the next step is to learn more about the costs of investment! Here is a summary breakdown of the entire costs that you will need to consider in order to invest in the UK:

UPFRONT COSTS:

1. Stamp Duty – is a mandatory tax that has to be paid if you purchase a residential property and usually costs more than £125,000. You can also use a stamp duty calculator for a more accurate answer. Let’s take a look at the stamp duty rates: 

Stamp Duty Rates
Minimum property purchase price Maximum property purchase price Stamp Duty Rate
£0 £125,000 0%
£125,001 £250,000 2%
£250,001 £925,000 5%
£925,001 £1.5 million 10%
Over £1.5 million 12%

It’s necessary to file a Stamp Duty Land Tax (SDLT) return and pay the due for 14 days to avoid penalties. However, this varies accordingly:

Stamp Duty Relief for first-time buyers 

A stamp duty is NOT necessary to pay for on properties worth £300,000. You will only have to pay stamp duty at the relevant rate of 5% on the remaining amount for up to £200,000

However, if the property that you’re planning to purchase is worth over £500,000, then you will need to pay the stand rates of stamp duty and will no longer be qualified as a first-time buyer.

Stamp Duty for Non-Residents
The rates are usually + 2% higher in comparison to UK residents. Different rates of Stamp Duty Land Tax (SDLT) are also applicable to those who purchase a residential property in England & Northern Ireland.

Stamp Duty on Second Homes

If you are planning to purchase another property, you have to pay an extra 3% in stamp duty on top of the standard rates. This excludes mobile homes & caravans.

2. Cost of the Property – depending on your preferred property type, the cost of your target property should be estimated using an Airbnb calculator

Average Property Prices in the UK
Property Types Detached Semi-Detached Terraced Flats
Average Price £391,747 £245,218 £207,267 £218,829

Source: RW Invest UK

Average Property Prices in the London
Property Types Detached Semi-Detached Terraced Flats
Average Price £1,088,765 £682,453 £574,983 £443,216

Source: UK Government

Average Property Prices in the Wales
Property Types Detached Semi-Detached Terraced Flats
Average Price £326,907 £205,379 £164,838 £133,082

Source: UK Government

3. Legal Fees – with the help of a professional solicitor, legal paperworks can easily be handled which may cost around £1,000 – £2,000.

4. Land Registry Fees – properties in the UK with the price range of £100,001 – £200,000 will cost a £200 land registry fee. On the other hand, properties ranging from £200,001 – £500,000 will cost around £300.

5. Cash Buffer –  refers to the number of days wherein your business may have surprise costs. You can prepare at least £2,000 as a cash reserve for any unplanned expenses that may come your way.

ONGOING COSTS: 

1. Repayment mortgage is one of the ongoing costs that you have to consider. Usually, in a series of monthly payments, this refers to paying both the capital that was lent and the interest accrued. 

Here are some of the most recommended mortgage repayment calculators online that are free:

  • Money Facts UK
  • Money Helper UK
  • Money Supermarket
  • Agency fees vary based on the percentage of the price your property. It can go anywhere from 0.75% to 3% VAT, depending on the type of contract that you have signed with your estate agent. 

For instance, if a property is listed for £250,000, then a traditional estate agent fee could be £3,750.

LEGAL FEES: 

1. Licensed conveyancer fees indicates any professional service to your solicitor or licenced conveyancer for completing legal work such as handling contracts, local council searches, and the like. You can also ask for conveyancing quotations which are usually fixed rates & fully inclusive. 

The fees vary according to the type of property, location, and how complex the transaction would be. For instance, in London, a solicitor usually charges £850 – £1,500 with a VAT of 20%.

2. Mortgage fees in the UK usually include the following:

  • Booking fee = £99 – £250
  • Arrangement fee = £2,000
  • Mortgage valuation fee = £150 above
property investment in United Kingdom

Timeline to Purchase a Property in the UK

So let’s talk about how long does it usually take to buy a property in the UK. While it’s a long process that should be properly strategized, it’s important to know how the typical timeline looks like. Here’s a detailed end-to-end timeline to prepare your expectations:

1. Getting a mortgage Agreement in Principle (AIP) 24 hours

First and foremost, getting a mortgage in principle agreement should be the first thing you have to do to understand the price bracket of properties. When you approach a lender, it usually takes 24 hours – a few days to get an AIP.

2. Searching for the Right Property 4 weeks to 8 months

This stage depends on what kind of property you are looking for. For instance, if you want a newly built property in an area with housing developments, then it won’t take a long time. You can also conduct an online research using estate agent sites to speed up the process!

3. Submitting & Approval 1 day to 2 weeks

Once you have found the perfect property, the next step is to put in your offer. However, once your offer has been accepted, you can’t legally purchase the property yet until the exchange of contracts.

This is why you’ll need an estate agent’s help to make sure that your target property is settled & can’t be replaced by other offers!

4. Setting up your Mortgage 2 to 8 weeks

By looking at various mortgage deals online, you can easily compare the costs & other factors to find the best deal. However, if you don’t have much time to do so, then seeking advice from mortgage experts in the UK  would make your life easier!

5. Conveyancing 4 to 12 weeks

This includes environmental searches, planning permission & other important documents that a conveyancing firm has to perform on your behalf. More often than not, a mortgage lender or broker is connected to a conveyancer so it’s best to ask for their recommendations.

6. Exchanging of contracts 2 to 3 weeks

In this stage, the house purchase agreement is legally binding between the buyer & seller. Since most banks have a limited amount to transfer money, it’s best to check with them to make sure that your account isn’t over the limit.

7. Completion date 2 weeks

Congratulations! Once your conveyancer has successfully facilitated the transfer of ffunds, you will need to consider other errands including paying stamp duty, registering, obtaining the title deeds, and the like.

• In summary, the maximum timeline for purchasing a property would be around 31 weeks or 7 months in general. Although this depends on your preferred property & other legal considerations, it’s always recommended to ask for advice from estate experts in the UK.

Where to find properties for sale? 

Not sure where to find properties for sale in the UK? Make an informed decision by looking at the following list of options:

• Drive around your preferred area

If you need more convincing before you finalize your decision to purchase, then it’s highly recommended to visit or drive around your preferred area and look at the properties for sale! 

Reach out to UK-based estate agents

If you simply don’t have the time to look thoroughly for properties, then a lending hand from an estate agent is definitely the best option. By looking at the best UK estate agents & estate agents directory, you can definitely choose the best fit for your desired property.

• Look at the best property websites

There’s no denying that your pool of options can seem a little too overwhelming, so here are some of the best property websites in the UK that you can look into:

I. Rightmove

II. Zoopla

III. Savills

IV. On the Market

What is a good cash return / net rental yield? 

You can generate good cashflow from your residential investment prroeprty by either renting out long-term or short-term. For the long-term rental, you’ll rent out your property for minimum 12 months. There’s very little maintenance to do and you’ll need to visit the property on a quarterly basis to do inspections & other similar errands. 

However, if you are after high return investments such as over 10% net rental income, running a short-term rental is what you need to consider. By doing short-term rental, you need to target somewhere between 10 – 25% net rental yield, and 20-50% cash return during the first year. If you are inclined toward this option, then make sure to check the top UK cities’ rental demand!

Airbtics is designed to showcase accurate data for simulating cash returns using the ultimate Airbnb Calculator. Choose to stand out among your competitors & try Airbtics!

Airbtics
Categories
Airbnb Occupancy All About Airbnb

Latest Airbnb Data in London: Occupancy Rates, Legality, Best Neighbourhoods & more!

The beautiful capital city of England & United Kingdom – London, is one of the most visited cities in the world. Despite the restrictions implemented amidst the pandemic, this city remains to be one of the most popular destinations visited by numerous travelers across the globe.

Relatively, as travelers look for their ideal place to stay in London, the demand for Airbnb is expected to rapidly increase. According to iProperty management, over 50% of guests prefer to stay at an Airbnb than a traditional hotel for various reasons and an experienced host can earn an average of $10,000 annually.

While this may sound enticing to Airbnb hosts who would like to invest their time and money, you have to keep in mind that some neighborhoods may not offer an equal amount of return on investment.

The good news is that we’ve created this article to guide you through!

Frequently Asked Questions

Yes, it is! The government only allows Airbnb hosts to run a short-term rental in a residential area for 90 days a year.

A planning permission is ONLY required for property owners in London who are putting up their short-term letting for up to more than 90 nights in a calendar year.

The first thing that you need to do is apply to your local council for a planning permit and they will provide the succeeding steps & requirements.

Typically, the month of September is the highest season in London with an average of 53% occupancy rate.

According to Airbtics' Data, the average daily rate in London is £139 for private rooms & £92 for studio-type rooms.

As of April 2022, Islington has the highest occupancy rate of 71%.

Yes! We think that this is a great idea, as long as you find the right location to invest in!

 

It's important to know that there is also a huge number of business travelers and students in London - so even if your Airbnb doesn't flourish, you will still have a lot of fallback options.

Based on our in-depth research, if you are looking for maximizing your revenue in London, Hounslow is ranked 1st on our list with annual revenue of £46,308.

As of April 2022 when I conducted the research for London boroughs, Sutton has the least number of studio-type rooms in London's Airbnb listings. This means that there are only a few Airbnb hosts offering that particular type of listing in the said area.

According to our research, Bromley is one of the areas that ranks lowest on both annual revenue and occupancy rate in London. It was estimated to have the lowest annual revenue of £4,968 and an occupancy rate of 11%.

airbnb occupancy rate

airbnb occupancy rates London

A heatmap is a data visualization technique that helps users to comprehend and analyze the data presented in various colors.

For instance, this map of London above represents the boroughs with the highest & lowest annual revenues. 

Primarily, Airbnb hosts like you will benefit from using the heatmap by identifying which are the highly profitable neighborhoods in your area.

Through this accurate & reliable information, you can compare each listing in order to strategize properly and answer the most important question: is it going to maximize your revenue in the long run, or not?

If you are looking forward to running your Airbnb business in the long term, strategizing your occupancy & daily rates as well as learning where to invest in property in London are just as important as maximizing your revenue.

Thanks to technology, you can analyze all that using an accurate data tool that can help you estimate your earnings!

airbnb london revenue
how much can you make on airbnb
airbnb listings london

As of April 2022, here is the statistics for Airbnb listings in London!

This kind of market-specific information is important especially for hosts like you – whether you have an entire property available, or just wish to rent out private or shared rooms.

Through this, you can easily strategize & tap into the huge Airbnb market!

Based on our research, the most preferred listing in London is private rooms with a total number of 5,862.

Total number of listings: 18,398

  • Private rooms: 5,862
  • Studio: 422
  • 1 Bedroom: 2,602
  • 2 Bedrooms: 2,058
  • 3 Bedrooms: 729
  • 4 Bedrooms: 311
  • 5 Bedrooms: 109
  • 5+ Bedrooms: 48
  • Hotel Rooms: 130
  • Shared Rooms: 115

Having an estimated percentage of your occupancy rate is one of the most essential key performance indicators for hosts in the Airbnb business.

This refers to the proportion of days in a month for which your property has bookings.

Primarily, as seen on the stacked bar chart, London’s highest occupancy rate in 2021 is during the month of September with a percentage of 53%.

london occupancy rate
  • March 2021: 26%
  • April 2021: 30%
  • May 2021: 31%
  • June 2021: 34%
  • July 2021: 34%
  • August 2021: 42%
  • September 2021: 53%
  • October 2021: 43%
  • November 2021: 44%
  • December 2021: 45%
  • January 2022: 30%
  • February 2022: 39%
airbnb london daily rate

 

 

Here is a stacked row chart that contains the nightly rates in London. It’s noticeable that since March 2021, there has been a great increase!

Relatively, the month of June ranks first with the total amount of £147, while the month of March is ranked least with the total amount of £119.

  • March 2021: £119
  • April 2021: £122
  • May 2021: £143
  • June 2021: £147
  • July 2021: £146
  • August 2021: £141
  • September 2021: £139
  • October 2021: £141
  • November 2021: £143
  • December 2021: £145
  • January 2022: £143
  • February 2022: £142

Finally, here are the top 5 highest & lowest boroughs in London based on their respective annual revenues.

Top 5 Maximum Revenue:

1. Hounslow – £46,308

2. Lewisham – £32,9523

3. Islington – £25,584

4. Kingston upon Thames – £24,936

5. Camden – £22,968

Top 5 Minimum Revenue:

1. Bromley – £4,968

2. Greenwich – £5,592

3. Enfield – £7,200

4. Newham – £7,260

5. Waltham Forest – £7,320

highest and lowest revenue

LOOKING FOR OCCUPANCY RATES IN OTHER CITIES?

Check out the highest Airbnb occupancy rates 2022!

Download London Boroughs Spreadsheet now!

Airbnb data in london

Based on in-depth research, this document contains accurate data on London boroughs for studio-type rooms including the annual revenue & occupancy rate using Airbtics tool. 

Here is a comparison chart between Airbnb & Hotels in London according to their occupancy rates from August 2021 to February 2022. 

Based on this data, we can say that hotel occupancy rates in London are ranking higher in comparison to Airbnb. 

Hotel Occupancy Rates:
MONTHSREVPAR
August 2021£63.97
September 2021£82.7
October 2021£95.22
November 2021£100.76
December 2021£82.08
January 2022£42.69
February 2022£76.88
Airbnb Occupancy Rates:
MONTHSREVPAR
August 2021£59.22
September 2021£73.67
October 2021£60.63
November 2021£62.92
December 2021£65.25
January 2022£42.9
February 2022£55.38

Download Airbnb vs Hotel Occupancy Rates Spreadsheet now!

airbnb vs hotel london

Based on in-depth research, this document contains an accurate comparison between Airbnb and Hotel Occupancy Rates in London using Airbtics tool. 

London Gross Rental Yield

Here is a comparison chart between Islington and Hounslow. Based on our spreadsheet about London Boroughs, you would know that these two are ranking first on both occupancy rates & annual revenue among all the boroughs in London.

As presented on this chart above, Hounslow has a higher gross yield of 2.27% which means that it is the best borough to invest in London! Please take note that during this research, we have filtered the properties in studio-type rooms. 

BoroughsStudio PriceAnnual Revenue
Islington, London£138,000£1,824
Hounslow, London£170,000£3,859
london boroughs annual rate

After a thorough investigation, we have come to the conclusion that as long as you have chosen the right location to invest in, it is definitely recommended to try investing in London! Aside from the fact that it is one of the most popular destinations in the world, the opportunity to maximize your revenue is limitless. In addition to this, Airbnb hosts like you should consider using a data analytics tool in order to get along with the fast-shifting industry. This will not only help you strategize in London but anywhere in the world, such as in other best buy to let locations in the UK!

Airbnb Data
Airbnb Data

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