Average Londoner Earns Over £100 a Day from Airbnb

The average 2 bedroom London property rented through Airbnb generates £106 a day (excluding the cleaning fee), according to Portico estate agents who have recently launched a premium Airbnb management service.

Average Airbnb day rates range from the most expensive at £224 a day in Westminster to a reasonable £65 a day in Bexley.

The average 2 bedroom London property at £106 a day would produce a healthy monthly income of £2,226 on a 70% occupancy rate, which is the minimum occupancy the agents say they expect to achieve.

In fact, the agent states that some properties can achieve up to an 80% occupancy, plus they expect Airbnb listings to receive a booking within 1 week so Hosts can start earning immediately.

When compared to the average monthly rent for a two bedroom property in London on a long-term let (£1,777), there’s a huge £449 a month difference.

The below graphs show the estimated average Airbnb day rate for a 2 bedroom property per London borough, and the number of active hosts per borough.

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 *Portico rental data January 2017 (based on two bedroom properties and a 70% occupancy rate).

Westminster is the borough with the highest number of active listings at 5,631, closely followed by centrally located Tower Hamlets with 5,076 listings, and trendy Hackney with 3,572 active listings.

Brent (£99) and Newham (£95) also stand out for having a lot of active users considering their Zone 3 locations. This can be put down to the fact that Brent’s most famous feature is the legendary Wembley Stadium; similarly, Newham is extremely popular with Airbnb guests who want to be close to the Excel Exhibition Centre.

Merton is also in high demand as it’s home to Wimbledon. Currently there are only 642 active listings in the area and the average Airbnb day rate for a two bedroom property sits at reasonable £95 a night, but we expect the number of hosts and prices to rise dramatically with seasonal demand.

Robert Nichols, Managing Director, Portico, says:

 “Londoners in their thousands are turning to Airbnb as a way to generate extra income. And despite the 90 day limit, even seasoned landlords are coming round to the fact that a combination of Airbnb and traditional tenancy will maximise their return on investment.

If your property becomes vacant in the quieter months, we recommend listing your property on Airbnb and synchronising your tenancy to start a long-term let in the summer or late summer when demand from tenants and therefore prices are highest.

Or, if your property is already on the market, why not earn on Airbnb until you let or sell it? Every day it’s sitting vacant is potentially losing you money, so it really does pay to get on board with Airbnb in short-term.”

Discover the Airbnb value of your property!

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Top 10 places to buy-to-let in London, according to Portico Estate Agents

Over the past 5 years, all 32 London boroughs (and particularly those in central London) have experienced substantial property price growth, fuelled by a combination of record levels of overseas investment and historically low interest rates.

Whilst it is true that the recent reduction in the availability of interest-only mortgages and increases in stamp duty for the most expensive properties may mean that this trend will not be sustained indefinitely, it is certainly the case that, at the moment at least, central London property prices are at an all time high.

However, whilst property prices have increased substantially, rental prices have broadly continued to track earnings growth. As a result, rental prices have not increased at the same rate as property prices and yields have steadily declined in central areas for at least the past five years that we have been tracking them.

– See more at: https://www.portico.com/yields