Most Profitable Airbnb Locations UK
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.
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!
Top 10 Profitable Airbnb Locations UK
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%
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%
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%
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%
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%
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%
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%
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%
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%
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!
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.