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Best Cities to Be an Airbnb Landlord

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Picture of Toby France
Toby France
Short-let expert, Toby has managed thousands of holiday lets in London and across the UK and has boosted their profitability on booking platforms like Airbnb and Booking.com. Co-founder of HelloGuest, Toby has more than a decade's worth of experience in the industry.

Best Places in the UK to start an Airbnb Business Uncovered

London shows the most promise to be one of the most profitable Airbnb cities in the UK as an Airbnb landlord.

Data crunched by AirDNA has shown us that London earns the highest annual income, with Brighton falling close behind. Homeowners in this regard, at full occupancy, can earn 229% more from short-letting their property on sites like Airbnb than they would through renting to tenants.

Even if you were to rent a room one night a week on Airbnb for a year, you would generate, on average, £10,250, which is equal to six months of rent.

Peak periods, where tourism is high in months like July, could even see Airbnb landlords yield £3,181.53 a month on average.

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An overview – the most profitable cities per night in the UK on Airbnb

The best UK cities for Airbnb investment:

London | Edinburgh | Cardiff | Cambridge | Liverpool | Brighton | Bath

CityAirbnb Daily Rate
London£198.86
Manchester£143.57
Bath/Bristol£172.11
Edinburgh£164.08
Brighton£184.60
Liverpool£153.38
Cambridge£140.01
Cardiff£145.36

To boost your property’s rankings and earnings through Airbnb, talk to us, Airbnb managers with almost a decade of experience creating successful, high-earning properties. We earn only when you do. Contact.

Can you earn more through sites like Airbnb compared to rental leases and tenancies?

Compare average annual tenancy fees in several popular cities to average Airbnb earnings per area:

CityAnnual RentAnnual AirbnbDifference
London£21,984£72,385229%
Manchester£11,496£52,259354%
Bath£26,328£62,64837%
Edinburgh£30,312£59,72597%
Brighton£16,260£67,194313%
Liverpool£12,540£55,830345%
Cambridge£32,040£50,96359%
Cardiff£17,856£52,911196%

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What about paying off a house with Airbnb? Which cities are the fastest?

AirDNA with ONS also conducted a study to find which UK city offers the best combination of low property prices and high revenue returns from renting via Airbnb.

The study looked at 27 major British cities and revealed that Bradford was the best, with a median house price of £135,000. With a monthly revenue from Airbnb of £1,229, it would take nine years to pay off.

Swansea came in second, taking just 10 years to pay off the city’s median property price of £143,500. A high occupancy rate of over 62%, combined with monthly yields of £1,100, makes this Welsh city one of the best cost-effective options for hosts.

Areas like Brighton, for example, rank top for monthly revenue. However, Brighton has the third-highest media price list (£367,500), meaning it would take 18 years to pay off the home, ranking it 14th on the list.

airbnb management bath

The worst places to be an Airbnb host

Places like Leicester have a small occupancy rate (33%) with only 400+ active rentals. Plus, if you were to invest in property, it would take hosts 30 years to pay it off. So, not good for beginner hosts looking to get on the property ladder and earn a substantial second income too.

Remember that the study only looked at 27 cities in the UK, whereas the other forty or so may also offer very competitive returns. 

For help increasing how much you earn on Airbnb monthly, consult with Hello Guest, one of the best Airbnb property managers and agents on the market.

Talk to us today to see how much you can earn.

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