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Discover expert tips for Airbnb property investment in the UK for beginners, profitability, upcoming events, and more!
- Last updated on
- September 21, 2023
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.
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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