UK: A survey led by Vanquis Bank has named Cardiff as the most profitable city for landlords to operate an Airbnb.
The bank analysed data across 21 different cities, with calculations focusing on how much homeowners could make listing a spare room on the platform rather than renting it permanently.
Seven cities – Bath, Belfast, Brighton, Cardiff, Edinburgh, Manchester and Newcastle – were highlighted as cities in which homeowners could make more money renting for one night a week on the website than renting them out full-time. In Cardiff, residents were able to earn 86 per cent more than their traditional rental counterparts through the short-term let model.
Hosting an Airbnb for 52 nights a year in Cardiff could generate approximately £6,344 for owners, rather than £3,408 for traditional rentals. Belfast, the second most profitable location, saw similar numbers by generating £4,108 on Airbnb, 39 per cent more than the average rental income of £2,964.
However, Cambridge came out as the least profitable city for landlords looking to rent their properties out on Airbnb. The average rental annual income in the city was £3,744, 35 per cent below the the average of £5,772 from the cities surveyed.
London performed best for traditional rentals, with landlords making over $2,000 more per year in profits than their short-term rental counterparts. The city’s Airbnb supply plummeted in the early stages of the pandemic, with property owners deciding to return their properties to the traditional rental property market.
Many of these cities are hoping to attract people for staycations as they seek to reignite the national hospitality sector. According to research from Travelodge, 23 per cent of potential travellers are seeking city breaks, with Cardiff registering as one of the most popular potential options.