:
UK: London short let property management company City Relay has revealed the top ten London postcodes where homeowners are earning more than the cost of Christmas by renting their property this December.
City Relay has analysed booking data to identify which areas of London are most in-demand for short lets over the festive period and are commanding the highest rates per night. The analysis reveals:
-
An average nightly rate of £151 for holiday rentals in London this December. An average length of stay of 6.5 nights producing an average gross income of £981.50 per property.
-
Homes in SW1 are proving most popular for short lets with an average nightly rate of £257 being achieved this December with gross earnings of £1,670.50.
-
The central location of WC2 is a close runner-up with an average nightly rate of £243 and a gross profit of £1,579.50.
-
December is the fourth most popular month of the year based on the volume of room nights booked and the third most popular based on the average rate per night.
According to research carried out by debit card company Switch, the average UK household spends £868 at Christmas. By short letting their homes over the festive period, when demand for accommodation in the capital is high, Londoners are offsetting the cost of Christmas while giving visitors a home-away-from-home experience.
In the table below, City Relay has stack ranked the top ten London postcodes based on the average rate per night this December. It has applied the average length of stay of 6.5 nights to reveal how much homeowners are earning from renting their properties through Airbnb, Booking.com, VRBO and similar platforms.
Table: Top ten London postcodes based on holiday rental rates per night December 2019
|
Rank |
Postcode |
Neighbourhoods |
Borough(s) |
Avg rate per night in Dec-19* |
Gross earnings based on avg length of stay** |
|
1 |
SW1 |
Belgravia, Knightsbridge, Millbank, Pimlico, St James’s, Westminster |
Westminster |
£257 |
£1,670.50 |
|
2 |
WC2 |
Aldwych, Charing Cross, Covent Garden, Holborn, St Giles |
Camden, Westminster |
£243 |
£1,579.50 |
|
3 |
W6 |
Hammersmith |
Hammersmith and Fulham |
£230 |
£1,495.00 |
|
4 |
SW3 |
Brompton, Chelsea |
Hammersmith and Fulham, Kensington and Chelsea |
£180 |
£1,170.00 |
|
5 |
W11 |
Holland Park, North Kensington, Notting Hill |
Kensington and Chelsea |
£171 |
£1,111.50 |
|
6 |
W10 |
North Kensington |
Kensington and Chelsea |
£161 |
£1,046.50 |
|
7 |
W2 |
Bayswater, Little Venice, Paddington |
Westminster |
£160 |
£1,040.00 |
|
8 |
W4 |
Acton, Bedford Park, Chiswick, Grove Park, Gunnersbury |
Ealing, Hammersmith and Fulham, Hounslow |
£159 |
£1,033.50 |
|
9 |
NW1 |
Camden Town, Chalk Farm, Primrose Hill, Somerstown |
Camden |
£158 |
£1,027.00 |
|
10 |
SW5 |
Earl’s Court, South Kensington |
Kensington and Chelsea |
£140 |
£910.00 |
* Based on the properties City Relay manages which are typically high-end entire apartments and houses suitable for couples and families
** Based on one booking in December for 6.5 nights
Perhaps unsurprisingly areas in Westminster top the list with their proximity to the shops, museums and attractions that draw crowds to London throughout the year but especially at Christmas when they play host to lots of festive fairs and events.
Locations in the boroughs of Hammersmith & Fulham and Kensington & Chelsea are also proving to be popular choices with easy access to Heathrow Airport and a plethora of sightseeing and shopping options on the doorstep for visitors to London.
The data was compiled using City Relay’s yield management software OutSwitch. OutSwitch enables property managers to control their revenues, channels and operations in one single platform. This streamlined solution is unique within the short let property management space. All properties managed by City Relay and accepting bookings in December were included in the analysis.
For more information, visit the City Relay website here.
