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Airbnb Investment All About Airbnb

Airbnb Property Investment UK: A Guide for Beginners in 2023

Discover expert tips for Airbnb property investment in the UK for beginners, profitability, upcoming events, and more!

Key Takeaways

  • Airbnb hosts in the UK have smoothly earned their passive income which helped them to cover mortgage payments and inflation among others. Airbnb confirmed that a typical host in the UK earned more than £3,500 during the summertime of 2022 alone.
  • Kick-start your Airbnb property investment with this complete guide for beginners, particularly written for those who are based in the UK. The top 6 upcoming events in the UK that Airbnb hosts should take note of, particularly in London, Glasgow, and Scotland, are highlighted in this article.
  • Discover the profitability of your preferred property type with an Airbnb calculator and find the best Airbnb areas with high demand in the United Kingdom. 

Introduction

Investing in a property for Airbnb is a risk that the majority of hosts take to generate additional income. Particularly in the United Kingdom, where Airbnb recently reported hosts who operate private rooms have earned over £170 million in 2022.

Sounds like a sweet deal, right? And who would say no to a generous passive income?

But the question is, how can beginners start a property investment in the UK?

In this article, we’ll feature a step-by-step process of Airbnb property investment in the UK, expert tips, upcoming events, and more. Stoked to learn more? Continue reading!

Is Airbnb Profitable in the UK?

Airbtics’ data confirms that Airbnb is profitable in the UK. An average host can expect to earn a monthly revenue of £2,446 with an average Airbnb occupancy rate of 55% in the UK. However, it’s good to note that the level of profitability depends on the following factors:

1. Location

Evaluating the location is extremely important to consider as it will reflect on your property’s return. Generally, it’s ideal to invest in a property that’s near your primary residence or office so that it can be managed well.

Apart from this, you should also consider whether the location is accessible to nearby tourist attractions, dining, or public transportation. Finding the best neighborhood for Airbnb property investment is the first step that you need to take. After all, this is a crucial step as it will affect your decision-making in the long run!

2. Market Saturation

A saturated market refers to the existing Airbnb listings in your preferred area. As a rule of thumb, it’s ideal to look into a market that’s not oversaturated. This is because oversaturated markets tend to have tight competition. And unfortunately, this may force you to lower your prices to get more bookings. 

As a beginner in the Airbnb industry, it’s highly recommended to look into the saturation of your target market to identify long-term profitability.

3. Property Type

Looking into the existing property types that are in demand in your area will help you cater to various Airbnb guests. For instance, if the property is located within the city centre where there are more business professionals than families, it might not be ideal to invest in 4-5 bedroom properties. Instead, you may opt for a studio-type or a 1-bedroom apartment.

4. Seasonality

The seasons and events in your target area are important to anticipate more bookings! This is where you can adjust your prices as the demand for accommodation increases.

Property investors are usually looking into markets with low seasonality. Take note that low seasonality does not mean that the area is not profitable! An area with low seasonality may have year-round bookings and, therefore, has a  steady revenue.

5. Potential Profitability

Getting a grasp of your profitability before investing in a property will help you set your expectations. While there are several Airbnb host expenses to prepare for, it’s equally important to gauge potential profitability as well. So you can begin exploring the most profitable Airbnb locations UK in 2023

Short-term rental analytics providers make this process easier for property investors. Making wise investment decisions should be a part of your initial planning to achieve success!

What are the Upcoming Events in the UK? 

The major events in the UK highly contribute to Airbnb bookings within the area.  This is where Airbnb hosts are excited the most as they can earn more by increasing their charge per night!
Here are some of the upcoming events in the UK that Airbnb hosts should take note of: 

1. Glasgow International Comedy Festival

The Glasgow Comedy Festival has been celebrated for 2 straight decades now. This year, there will be 380 shows in 37 different venues, celebrated in 19 days from March 15th to April 2nd, 2023.

Airbtics’ data shows that the median revenue in Glasgow City last March 2022 was £1,854. An Airbnb host in Glasgow can expect to earn the highest revenue in July and the lowest in January.

Property Investment UK for beginners
2. Scotland vs Italy Rugby World Cup

The players for the final day of the Six Nations Championship in 2023 are Scotland vs Italy. This Rugby Tournament will be held on March 18th at Murrayfield Stadium, Edinburgh. This event is most awaited by rugby fans as their last match was way back in 1996.

Airbtics confirm that an average host in Edinburgh can expect an annual revenue of £38,565 for a 1-bedroom apartment/condo alone. Its seasonality is at 43%, where an Airbnb host can expect the highest revenue in the month of August.

3. Gemini Oxford and Cambridge Boat Race London

Known as one of the most iconic British events, The Oxford vs Cambridge Boat Race attracts thousands of spectators annually. This event will feature both men’s and women’s races which will be held on March 26th, 2023.

Recent data from Airbtics shows that there are currently 300 Airbnb listings along Thames Riverbanks near Putney Bridge. An Airbnb host in Glasgow can expect to earn the highest revenue in July and the lowest in February.

 

Where to Start Airbnb Investment in the United Kingdom? 

Now that you have a brief overview of property investment in the UK, let’s discover the most recommended Airbnb areas with high demand:

1. York
  • Airbnb occupancy rate: 62%
  • Average daily rate: £128
  • Airbnb annual revenue: £28,484
  • Best property size: 4 bedrooms
  • Existing Airbnb listings: 1,110 listings
2. Liverpool
  • Airbnb occupancy rate: 54%
  • Average daily rate: £111
  • Airbnb annual revenue: £22,416
  • Best property size: 2 bedrooms
  • Existing Airbnb listings: 1,499 listings
3. Belfast
  • Airbnb occupancy rate: 77%
  • Average daily rate: £101
  • Airbnb annual revenue: £26,682
  • Best property size: 2 bedrooms
  • Existing Airbnb listings: 764 listings
4. Plymouth
  • Airbnb occupancy rate: 58%
  • Average daily rate: £88
  • Airbnb annual revenue: £16,762
  • Best property size: 4 bedrooms
  • Existing Airbnb listings: 548 listings
5. Manchester
  • Airbnb occupancy rate: 69%
  • Average daily rate: £95
  • Airbnb annual revenue: £20,855
  • Best property size: 1 bedroom
  • Existing Airbnb listings: 950 listings

Takeaway

Property investment for beginners in the UK shouldn’t be a complex task in the digital era. In fact, the best location to buy property in London can be discovered in one click!

Airbnb data shows that property investment in the UK can truly help hosts to achieve financial freedom. In fact, with or without the major events occurring annually, hosts can still expect to earn a steady revenue.

If you’re looking to invest in a property in the UK, using an Airbnb income calculator will help you make data-based decisions. Don’t make the wrong investment decisions based on guesses, try Airbtics now and stand out among your competitors!

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Find unsaturated neighborhoods with the highest occupancy history.

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Airbnb Investment All About Airbnb

Investing in Property for Sale: How to Buy A Profitable Property for Airbnb in York City Centre

airbnb property for sale York City Centre

York is popular for buildings with Roman architecture that go way back centuries ago. Despite this, it is still a very affordable property investment location. York is a unique city encased within the city walls which was originally built to form part of the defence in the past. The surviving masonry stretches 2 miles and is by far one of the most popular tourist attractions in the city!

.

York is one property hotspot in the country that you can count on when it comes to property investment. Investing in property in York gives you peace of mind because your investment will be well placed.”

– Polish News on York Property Investment

If you are interested to invest in a property in York where you can maximize profitability, then it’s certainly a must to consider the major things to look out for when buying a property for Airbnb. While rental arbitrage in the UK is fairly popular and does not require you to purchase a property, it’s still the best to learn about buying a property for Airbnb and making sure that it’s profitable. Primarily, it’s also important to check Airbnb rules in York to operate the business without any hesitations.

Here’s an interesting fact: York City Centre is considered to be the best neighbourhood for investment. According to Airbnb rental arbitrage in York, this area is recognized for its historic and tourist sites, which reflects strong demand for holiday lets and accommodations.

In this article, we’ll discuss the metrics in order to gauge the best property investment, specifically when buying a property investment in the UK. This includes the best website recommendations for property investment in York, property gross rental yield, cash-on-cash return, and monthly revenue, along with some of the most ideal and profitable properties according to their location. 

Stoked to learn more about starting an Airbnb business in the UK, particularly in York City Centre? Continue reading to learn more!

Is Property Investment Profitable in York City Centre?

Since the UK has the fastest-growing property markets across the globe, there is a wide variety of profitable property investments offering higher yields. Using an Airbnb calculator, it was discovered that a 2-bedroom apartment in York City Centre can generate an annual revenue of £51,733 with a steady occupancy rate of 63% and a nightly rate of £210.

airbnb property for sale York City Centre

airbnb property for sale York City Centre

Profitable Properties for Sale in York City UK

Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage. 

At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the houses for sale in Yorkshire, England, along with their prices, calculated gross rental yield, cash-on-cash return, and annual revenue:

airbnb property for sale York City Centre
airbnb property for sale York City Centre

Sunbridge Road, Bradford BD1

1. Studio-type Property for Sale York
0.4 miles to Bradford Forster Square

Asking Price: £15,000

GROSS RENTAL YIELD 43.15%
ANNUAL REVENUE £6,473
CASH ON CASH RETURN 103.69%
airbnb property for sale York City Centre
airbnb property for sale York City Centre

Bradford Central, Bradford BD1

2. 1-Bedroom Property for Sale York
0.5 miles to Dixons Trinity Academy

Asking Price: £120,000

GROSS RENTAL YIELD 27.36%
ANNUAL REVENUE £32,833
CASH ON CASH RETURN 56.32%
airbnb property for sale York City Centre
airbnb property for sale York City Centre

Woodville Court, Roundhay, Leeds LS8

3. 2-Bedroom Property for Sale York
Near Colegio San Antonio de Padua

Asking Price: £145,000

GROSS RENTAL YIELD 26.26%
ANNUAL REVENUE £38,082
CASH ON CASH RETURN 53.02%
3-Bedroom Property for Sale York
3-Bedroom Property for Sale York

32 Spruce Way, Selby YO8

4. 3-Bedroom Property for Sale York
Near Plaza Mariano de Cavia

Asking Price: £185,000

GROSS RENTAL YIELD 26.56%
ANNUAL REVENUE £49,133
CASH ON CASH RETURN 53.91%
4-Bedroom Property for Sale York
4-Bedroom Property for Sale York

Springfield Drive, Lofthouse, Wakefield, West Yorkshire WF3

5. 4-Bedroom Property for Sale York
2.8 miles to Wakefield Westgate

Asking Price: £280,000

GROSS RENTAL YIELD 25.45%
ANNUAL REVENUE £71,247
CASH ON CASH RETURN 50.57%

Conclusion

Since Airbnb is rapidly increasing and constantly changing for each city in the world, it is crucial to make decisions based on wild guesses. The data points mentioned in this article for York such as Airbnb occupancy rates, annual revenue, and average daily rate should be the primary basis before investing in a property. 

Hence, if the data presented above has given you ideas to boost your strategic pricing plan for your business, then an Airbnb rental arbitrage calculator is certainly what you need for success in the long run. It’s a fact that some of the STR investors are also considering Airbnb Rental Arbitrage, but they still need to have a reliable data tool on which to base their conclusions! 

As we live in a digital era, an accurate data analytics tool can help your business stand out among your surrounding competitors and benchmark your property by tracking the occupancy rates of competing listings in your preferred city.

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Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in York

Are you interested in achieving financial independence through passive income? Here’s a disclaimer: you don’t need to own a property to start the Airbnb rental arbitrage business! In this article, we featured the entire process of Airbnb rental arbitrage in York, its profitability, and the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage!

What is Rental Arbitrage? 

Rental Arbitrage is a way to start an Airbnb business with no money. By convincing landlords to lease you a property, you can furnish and sublease it on Airbnb and VRBO. No need for you to buy a property! 

It is perfectly legal and is a proven scalable business model. In my podcast, I have spoken to various entrepreneurs doing Airbnb arbitrage full-time. 

Here’s a proof! In York, Nick manages 35 listings and I’m pretty sure he doesn’t own the all properties. He made £723,507 in the last 12 months.  

York airbnb rental arbitrage

How much can I make with rental arbitrage in York?

Before you dive in and start putting out your hard-earned money on a property, it’s important to know how much profit you can make. For instance, the best borough to invest in is York City Centre located in the YO1 district with 4.4% yields! This area is recognized for its historic and tourist sites, which reflects strong demand for holiday lets and accommodations. 

Now that we have the best neighborhood to invest in York, let’s talk about profitability and monthly expenses.

York airbnb rental arbitrage
Profit & Monthly Expense in York

Based on Airbtics’ data, you can earn a whopping £5,299 per month for a 3-bedroom apartment in York City Centre alone. With the data provided, you can certainly tell that investing in a property in York is profitable!

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
£1,914 £5,299 £1,060 £2,325

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and monthly expense (£5,299-£1,914-£1,060 = £2,325).

 Startup Cost in York

Now that you have an overview of how much your monthly expense and revenue is, let’s talk about the start-up cost! How long does it take for an investor like you to get back the startup cost? Let’s take a look at this calculation:

Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
£5,828 3 months

The average estimated startup cost (for furnishing) in York is around £2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (£3,828). Now that we have a total startup cost of £5,828, cash return time can be calculated by dividing this by the monthly profit (£2,325).

Given your monthly revenue of £2,325, it will take approximately 3 months time to get back the startup cost! In such a short period of time, you can already expect profit and consider starting your second unit for rental arbitrage. If this sounds promising to you, then go ahead and look at the other best areas for rental arbitrage in York!

Best Areas for Rental Arbitrage in York

Before investing in a particular area in York, you have to take a look at the top markets and number of listings to set your expectations for success. Check out the top 3 neighbourhoods in York ranked by their annual revenue, along with their occupancy & daily rates!

1. York City Centre (YO1)

A popular location for city living, York has a strong demand for holiday accommodations because of its tourist sites. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £1,181 £3,563 79% £169
2-bedrooms £1,404 £4,385 68% £261
3-bedrooms £1,914 £5,299 62% £340

According to our Airbtics Dashboard, there are more than 248 Airbnb listings with 18 private room properties and 105 one-bedroom properties in this area. The monthly revenue for most properties in York City Centre is more than £2,325 per month with occupancy being more than 55%.

2. Clifton (YO30)

York is a university city that the majority of investors prefer! Clifton is among the recognizable areas for student accommodations with yields ranging from 4.4 – 5.3%. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £1,038 £2,129 66% £140
2-bedrooms £1,120 £3,394 69% £173
3-bedrooms £1,443 £4,023 67% £282

This area has a total of 211 Airbnb listings with 60 private room properties and 85 one-bedroom properties. The monthly revenue for most properties in Clifton is more than £1,775 per month with occupancy being more than 58%.

3. Holgate (YO24)

Last but not least, West York’s property area with another interesting value! Holgate offers townhouses that are preferred by family buyers and students. This area has close proximity to the city centre and railways. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £1,028 £1,377 56% £104
2-bedrooms £1,097 £1,659 55% £151
3-bedrooms £1,377 £4,247 49% £223

This area has a total of 47 Airbnb listings with 16 private room properties and 33 one-bedroom properties in this area. The monthly revenue for most properties in Holgate is more than £2,020 per month with occupancy being more than 50%.

how much can you make on airbnb

Short-term rental regulations in York

To begin with, it’s certainly important to be familiar with the Airbnb rules in York to make sure that your business will run smoothly. Here are some of the short-term rental regulations and laws to take note of:

  • If the total of all lettings that exceed 31 continuous days is more than 155 days during the year, then your property will not continue to be a Furnished Holiday Let for that year.
  • Your property must be available for letting as furnished holiday accommodation letting for at least 210 days in the year. The creation of a six-month tenancy would compromise this regulation.

How to Find Landlords for Airbnb Rental Arbitrage

Airbnb investment through rental arbitrage is one of the best strategies to have passive income. However, it could be a challenge to find a landlord that allows their property for subletting on Airbnb. You can also convince a landlord by following the rental arbitrage email template & be extra creative! 

Here are ways how you can find landlords that allow Airbnb rental arbitrage:

  1. Real Estate Websites

Renters in the digital world who are looking for properties online can easily connect with landlords. Some of the most recommended online real estate websites which allow you to filter by city, state, or ZIP code are:

However, you can also find apartment & condominium properties online in the following websites:

  1. Search Engines & Marketplaces

There are numerous property owners who are leasing their properties and you can easily find them on Google & online marketplaces. Check out some of the most recommended marketplaces:

  1. Communicate with Landlords

If you are currently renting a space or know someone who is, then it’s also recommended to speak with them. Start by asking if there are vacant rooms or properties and let them know about your intentions of putting them up for rental arbitrage. They might also be able to recommend neighbors or local friends who are also interested in this idea!

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Airbnb Rules All About Airbnb

Airbnb Rules in York

If you are looking to buy investment properties in the UK, knowing the Airbnb rules in your preferred city is the first step! In this article, we featured Airbnb regulations in York along with short-term let policies, buy to let properties, things to consider in property investment, and more. Continue reading and learn more about the Airbnb rules in York.

Is Airbnb legal in York? 

Don’t worry, Airbnb is legal in York! This city in the UK has Roman roots and a Viking past makes everyone who visits it feel as if they are stepping back into the middle ages with the ancient walls surrounding the medieval buildings and streets. Aside from that, York is also a fashionable city that offers plenty of world-class museums, restaurants, bars and other shops.

Here is a little proof! As of May 2022, there are 17,578 nights available in York from Airbnb alone. Stays manages 133 listings, while York Boutique and WelcomeLets operates 87 and 42 respectively. 

How much can I make by running an Airbnb in York?

Currently, there are 914 Airbnb listings in York, with 71% of entire houses earning up to £3,039 a month. The Average Occupancy Rate in York is 56% and the average daily rate is £196. According to short-term rental market data source Airbtics, a 2-bedroom apartment in York can make up to £48,318 each year. Check out our Airbnb Calculator to know how much profit can you make while doing short-term rentals! 

York airbnb rules
Short-term rental policy in York, UK
  • You need planning permission if you let your property for a series of short periods that add up to more than 90 nights during any calendar year.
  • You may pay less council tax for a property you own or rent that’s not your main home. Councils can give furnished second homes or holiday homes a discount of up to 50%.
how much can you make on airbnb

Buy to Let in York

Having a buy-to-let property in York is a practical investment because it is a student city offering landlords opportunities to invest in student accommodations. York is also one of the few areas where you can purchase affordable properties.

property investment york

Source: Rental Property York

Property Investment in York

If you are looking to start an Airbnb business in the UK, particularly in York, you have to consider which areas are the most profitable. Whether it is located in the city centre or in the countryside, knowing your estimated annual revenue and high-return investment opportunities is important. Using an accurate short-term rental calculator, it shouldn’t be a difficult task at all!

Rental Properties in York

Once you have decided to buy a property, you have to consider the average price, population, nearby landmarks or attractions, and rental yields to expect – among the rest. It could be a challenge to find rented properties in York, so here are some of the most recommended areas that you can look into & consider purchasing:

Area Population Average House Price Average Rent Price (pcm) Average Airbnb Revenue Yields
City Centre 9,500 £306,000 £1,502 £3,426 In the YO1 postcode area, the yields are 4.4%
North York 67,000 £260,000 £1,242 £2,575 Yields here, in the YO30, YO31 and YO32 postcode areas, are between 4.4% and 5.3%
East York 50,500 £189,860 £674 £1,616 4.7% yields are possible in YO10 although a student let should earn more

Source: Rental Property York

Investment Property for Sale in York, UK

Buying a property in York with an impressive rental yield is an excellent way to have a passive income, considering it’s one of the affordable cities in England to buy a property. By looking at the following property investment websites such as Right Move & News Now, you can get a grasp of the various prices in York.

York airbnb rules

Conclusion 

In my personal opinion, the biggest advantage of running a short-term rental is high return! I’ve talked to hundreds of Airbnb hosts over the past years and frequently met hosts making 15 – 30% gross rental yields, and 10-20% net. It’s also fun to do! 

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