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A Guide to Starting an Airbnb Business in the United Kingdom

The United Kingdom is known as the home of both modern parliamentary democracy and the industrial revolution. It is the first industrialized country in the world and has an incredible source of historical, cultural, and culinary richness! 

UK’s economic forecast is projected to increase by 3.6% and the number of tourist arrivals is forecasted to increase by 21.1 million by the end of 2022. Relatively, cities in the UK have the highest occupancy rate along with whopping annual revenue of £26,937 according to Airbnb occupancy rates by city. With these facts provided, starting an Airbnb business in the United Kingdom is an ideal investment to earn money this year! 

In this article, we featured all the things you need to consider before starting an Airbnb business in the UK. This includes rules & regulations, different kinds of mortgages, upfront and ongoing costs, and the like. Continue reading to learn more!

UK’s Rules & Regulations 

Before starting an Airbnb business in the UK, it’s important to understand the certain rules and regulations that you have to consider. Here are some of the major short-term regulations that you have to follow in the UK: 

  • The letting must NOT be for longer than 31 continuous days. (A period 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. 

If you would like to let your property for a number of months out of season, you can opt for an assured tenancy or an assured shorthold tenancy.

Rules & Regulations per city in the UK

Since there are various short-term regulations per city in the UK, you will also have to go through each law to make sure that your expectations are met. Learn more about the general legislation, short-term rental policies, Airbnb data, and other relevant info for each major city in the UK:

1. London Rules & Regulations 

London is the capital city of England & the United Kingdom and is known as one of the most visited cities in the world. Here are some of the Airbnb rules in London:

  • 90 days (without a permit)
  • No limit on renting out a portion of your home as long as you live there
  • Liable to pay council tax 
  • A planning permit is necessary for more than 90 days rent
2. Edinburgh Rules & Regulations

Edinburgh is considered the world’s best festival city filled with culture, comedy, and literary arts. Here are some of the Airbnb rules in Edinburgh:

  • Planning permission is necessary to change their residential dwelling to short-term visitor accommodation
  • Check to see if a Building Warrant is required to operate your Short Term or Holiday Let as a non-domestic use (more than 6 visitors) and/or alterations to the property.
  • Ensure you have a valid legal contract with the visitors staying on the property.
  • Check the implications of renting your property for your mortgage and tax purposes and check your title deeds for any conditions that would prevent the property from being used for a Short Term Let
  • Ensure you have the correct landlord insurance in place.
  • Ensure you have an Energy Performance Certificate (EPC) that has been issued in the last 10 years.
3. Cornwall Rules & Regulations

Cornwall is a seaside paradise located in southwestern England and is best known for its fishing harbors and lush countryside. Here are some of the Airbnb rules in Cornwall:

  • Short-term rental arrangements in ‘residential zoning districts’ are NOT allowed
  • Compulsory registration system
4. Manchester Rules & Regulations
  • Manchester is the largest metropolitan area in the north of England and it remains an important regional city. Here are some of the Airbnb rules in Manchester:

    90-day limit (without a permit)
  • Compliance with Board of Health regulations and Fire 
  • Name of a local authorized agent who can act on behalf of the owner in the absence of the owner in the case of any problems, violations or emergencies
  • Agreement to maintain a guest registry showing the name of each guest and the night(s) of their stay. 
5. Birmingham Rules & Regulations

Birmingham is the largest city in the West Midlands conurbation and is one of England’s principal industrial and commercial areas. Here are some of the Airbnb rules in Birmingham:

  • Prohibits short-term rentals of less than 30 days
  • Prohibits short-term rentals of less than 90 days in low-density residential areas
how much can you make on airbnb

Purchasing an Investment Property in the UK

You can purchase an investment property in the UK by considering the different kinds of mortgages, upfront and ongoing costs, and other expenses associated with your preferred property.

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

Source: UK Government

Airbnb Rental Arbitrage in the UK

If you prefer to rent a property instead of owning one, then you can definitely do so through Airbnb rental arbitrage in the UK! You can expect to spend around £2,500 to £4,000. This cost consists of everything including the deposit, furnishing, amenities, legal paperwork, and LLC Incorporation. Learn everything you need to know through the ultimate rental arbitrage guide & start earning profit anywhere in the UK!

How to Find a Profitable Area in the UK

Location analysis must be one of your top priorities when deciding on a rental location in order to increase profitability during such volatile times, especially while the pandemic continues to impact the rental market. 

The perfect way to find the best places to buy Airbnb property UK is by looking at an accurate Airbnb Market Dashboard & start comparing the profit of your competitors in your preferred location.

airbnb business in UK

Essential Airbnb Data in the UK

The majority of cities in the UK have been recognized from all over the world for perfection & their primary impact on tourism & economic standing. This includes the cities of London and Edinburgh based on recent research about occupancy rates by city.

What are the Most Profitable Boroughs in London? 

Airbnb occupancy rates in London have provided profitable results over the past few years. Here are the top 5 highest & lowest boroughs in London based on their respective annual revenues:

airbnb business in UK

1. Hounslow – £46,308 

2. Lewisham – £32,9523 

3. Islington – £25,584 

4. Kingston upon Thames – £24,936 

5. Camden – £22,968


Check out the best London property investment areas!

5 Excellent Airbnb Hosting Tips in the UK

1. Learn About Startup Costs

To begin with, it’s important to have an overview of Airbnb Startup Costs in order to prepare for the total expenses. Here’s a summary of the overall expenses per amenities:

List of Amenities Expenses
Room Amenities (two-bedroom £3,365 per unit
Hardware Essentials £1,304
Cameras £2,103 per property
Kitchen Utensils £841
Decorations £84,14 per room
Fresh Paint (with labor and supplies) £1,682 per unit
Misc. Supplies £420 per unit

Relatively, it’s important to learn about the process of Airbnb investment, legal considerations, and key metrics for successful Airbnb hosting. With the help of the Airbnb Investment Guide, you’ll be able to get started and have professional knowledge in starting an Airbnb business in the UK!

However, if you are on a limited budget, you can still fulfill your dreams of starting an Airbnb! Start by choosing the right location, creating a business plan, and being able to properly start an Airbnb with a minimal budget.

2. Utilize the Best Hosting Tools

Whether you are a newbie or a pro in the Airbnb industry, there’s no denying that Airbnb hosting tools play a huge role in the overall success of your business. Not only will these tools help you save time and energy, but they will also help you get better reviews and earn more revenue. This includes property management tools, message automation, and market research software.

Managing Airbnb listings alone can already be a difficult task especially if you don’t have much time to focus your attention on the properties that you’re handling all at the same time. 

Utilizing short-term rental data analytics such as Airbtics, Mashvisor, AirdDNA, and AllTheRooms can help you present & analyze data to create a strategic analysis for your Airbnb market research. You can also look at the 5 Best AirDNA alternatives in 2022 with vast free & paid options. 

3. Essential Airbnb Amenities

Once you have set your eyes on a particular property in the United Kingdom and successfully went through all the necessary documentation, don’t forget to add the essential Airbnb Amenities

Although it’s not necessary to add High-End Airbnb Amenities, you’d be surprised to know that there are affordable ones with great quality on the market. Relatively, there are also suitable amenities for vacation rental homes including a sweet welcome package & a local guidebook. 

Finally, if you’re simply forgetful and need a summarized checklist of Airbnb Amenities, feel free to download it in PDF!

airbnb business in spain
4. Effective Strategies for Promoting Airbnb Listings

It’s a given fact that constantly improving your listings will help to maximize your Airbnb revenue & get the highest occupancy rates. The best way to showcase the details of your Airbnb listing is through the power of advertisement! Some of the effective strategies for Promoting Airbnb Listings are:

  • Prioritize Booking Channels
  • Promote Airbnb listings by ranking on SEO (Search Engine Optimization)
  • Learn how to take the Best Airbnb Photos
  • Coordinate with your Local Tourism Council
  • Ask your Recent Guests to Leave Feedback
5. Know the Right Words to Say with Airbnb Message Templates

It could be a struggle to know what to say when your property is fully booked with guests!  Earn their trust & win your guests’ hearts by sending out the perfect Airbnb Welcome Letter Templates.

welcome letter sample

Most importantly, once your listing is up on the Airbnb platform, hosts will be evaluated according to their response rates. This means that the faster you respond to inquiries or concerns, the better!

By looking at Airbnb Message Templates for Hosts, you can easily prepare the saved replies according to their inquiry, and will automatically be sent to your guests.

Airbnb Data
Airbnb Data

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