UK: Short-term rental property management company City Relay has revealed the top ten London boroughs for short let rental income in this year’s summer period.
Having analysed booking data over the next six months, City Relay has identified which of the 33 London boroughs are most in-demand from visitors to the UK capital. The analysis reveals:
- An average nightly rate of £193 for holiday home rentals in London this July giving homeowners a gross profit of £2,700 for a two-week booking
- Homes in Westminster are in the greatest demand with the average nightly rate peaking at £256 in July
- Kensington & Chelsea is the second most popular borough for short lets this summer with demand driving the average nightly rate up to £230 in August
- Demand for short lets in London peaks during Easter, the May bank holidays, school holidays, during the FA Cup Final, and the tennis at Wimbledon.
In the chart below, the company has plotted the average nightly rate achieved for short lets of entire homes in the top ten boroughs in London over the next six months. The data has been aggregated from Airbnb, Vrbo, Booking.com and similar booking platforms.
The data shows that demand for holiday rental homes from June onwards pushes up the average nightly rate across the top ten most popular London boroughs.
As can be seen in the chart, Westminster is the most popular borough for short let properties in London over the next six months, with the average nightly rate ranging from £188 in February to £245 in August. July is the most popular month with the nightly rate peaking at £256 on average.
Westminster also has the highest concentration of properties for rent on Airbnb with over 8,000 homes listed currently.
Next up is Kensington & Chelsea, where the nightly rate increases from £183 in February to £230 in August. There are over 5,000 homes listed on Airbnb in the borough.
The third most popular area is the City of London where the rate per night averages £159 in February rising to £211 in August. There are fewer than 500 homes listed on Airbnb in the City Of London, reflecting the small size of the Square Mile and the relatively low volume of residential properties contained within it.
The borough of Camden is in fourth place in terms of average nightly rate with rates from £150 in February up to £189 in July and August. There are almost 4,000 entire homes listed on Airbnb in Camden.
Lambeth takes the fifth spot in City Relay’s top ten list with February nightly rates averaging £138 and hitting their peak in July at £187. With Wimbledon not too far away, it is not surprising that nightly rates are at their height in the first two weeks of July when the tennis tournament is on.
Hammersmith and Fulham, Southwark, Islington and Tower Hamlets fall into a similar price bucket from the region of £130-£140 in February to £160-170 in August, while rates in Islington peak at £180 per night on average in July. These four boroughs are well-served by Airbnb rentals and represent 25 per cent of all the entire homes available to short let in London.
Number ten on the list is Hackney where average nightly rates range from £129 in February to £153 in August. There are over 2,000 properties listed on Airbnb in the borough of Hackney, and the areas of Hoxton and Shoreditch are particularly popular choices with visitors.
City Relay CEO and founder, Maxime Leufroy-Murat, commented on the data: “Summer is when occupancy and average nightly rates are at their highest levels in London. Visitors tend to stay for longer and are prepared to pay more per night for the comfort of a nice home in a convenient location.
“And for guests, the rates for a home are still favourable when compared to London hotels for the same period,” he added.
London homeowners and property investors should note that without the appropriate planning permission from the local authority, they are restricted to short letting their London property for a maximum of 90 days per calendar year. Those failing to comply risk a fine of up to £20,000.
For more information, visit the City Relay website here.