With ongoing travel strikes causing chaos at airports across the nation, it’s no surprise that many UK citizens are choosing to stay closer to home this holiday season. According to data from the Bureau of Transportation Statistics, whilst air travel is up year-on-year, overall demand for flights is down by a staggering 76% compared to pre-pandemic levels. This highlights the extent of the preference for “staycations” over vacationing abroad this year.
Whilst this isn’t ideal for hopeful individuals who have their hearts set on an overseas holiday this summer, it’s great news for Airbnb hosts who are set to make a profit from waves of staycationing Brits. However, generating a large stream of revenue from holiday lets is dependent on the location of your property and how much you can fairly charge your guests to stay. Finding this balance between these two factors requires insight into the average Airbnb prices in different locations around the UK.
Luckily for any Airbnb hosts wanting to capitalise on staycations, insurtech company, Pikl Insurance, have done this research for you. After gathering Airbnb data from 69 cities across the UK, Pikl Insurance has discovered which locations have the highest average nightly price, largest predicted revenue per month (based on average nightly price and occupancy rate), and the most substantial quarterly rental growth increase in that area.
The study has revealed the top 10 locations where hosts should look to list Airbnb properties to make the most revenue this summer. It also provides insight into areas of growth for those looking to make a long-term investment.
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| Ranking | City | Average Nightly Price | Predicted Revenue per month | Quarterly Rental Growth |
| 1 | Dundee | £279 | £1900 | 16% |
| 2 | City of London | £263 | £1900 | 21% |
| 3 | Brighton & Hove | £212 | £2300 | 27% |
| 4 | Bath | £204 | £2300 | 16% |
| 5 | Chichester | £202 | £2000 | 28% |
| 6 | Edinburgh | £208 | £2100 | 19% |
| 7 | Bristol | £174 | £2300 | 16% |
| 8 | York | £179 | £2200 | 16% |
| 9 | Cardiff | £207 | £1700 | 17% |
| 10 | Portsmouth | £189 | £1800 | 24% |
The top location for an Airbnb host to list a property is currently Dundee in Scotland. Whilst the predicted monthly revenue is lower than other cities, properties here can expect to earn an average of £279 per night. Further to this, the quarterly rental growth of 16% indicates that Dundee is an up-and-coming area with increasing popularity, which makes it a great location for Airbnb hosts to invest in this year.
The City of London is in a very close second place, with an average nightly price of £263 and a large quarterly growth rate of 21%. Whilst the average nightly rate is lower than Dundee’s, the property is likely to be occupied for more nights throughout the month, generating the same amount of monthly revenue as the Scottish city. This makes it an ideal place to have an Airbnb listing for consistent income, and the large growth rate makes it a promising choice for future financial safety.
The next profitable destination on the list of top earning cities for Airbnb hosts is Brighton & Hove. This seaside location will rake in an average of £212 per night and is seeing one of the highest quarterly growths in rent at 27%. Much like the city of London, properties in this area are likely to be occupied for more nights throughout the month, meaning they have a lower average cost per night but still generate high monthly earnings of around £2300.
In 4th place is the city of Bath which also has a predicted monthly revenue of £2,300 and a rental growth rate of 16%. This is a similar growth rate to that of Dundee and makes it a promising place for Airbnb hosts to put up their holiday let listings.
Chichester sits in 5th place and has the highest quarterly growth rate out of all the 69 cities investigated by Pikl Insurance, sitting at a whopping 28%. This huge rental growth solidifies the West Sussex city as one for Airbnb hosts to watch out for if they are considering expanding their property portfolio into new areas.
The final 5 spots are claimed by Edinburgh, Bristol, York, Cardiff and Portsmouth. These cities all have great potential for generating revenue, earning between £1.7k and £2.3K per month. Their quarterly rental growth also sits between 16% and 24%, making them a promising place to put up an Airbnb listing.
Experts at Pikl Insurance state “We recommend that anyone looking to become an Airbnb host, or wishing to expand their existing portfolio, conducts research on their location prior to investing. This provides a great indication of how much money you’re likely to earn in your area and also helps you to fairly price your listing. If you’re looking to make this a serious source of income, this research will also be useful in helping to narrow down your choice of location to areas of the UK that will benefit you most in terms of continued profit.
To generate greater revenue, factors such as occupancy time, pricing, and how your listing is presented need to be considered alongside your property location as these can all affect both your rental income.
It’s also important to be conscious of hidden costs that can eat into your profits, such as property damage. It’s essential that you hold the right type of insurance for your short-term let to protect both your property and your income. Airbnb’s ‘Aircover’ shouldn’t be considered as an alternative to attaining the right insurance cover. A specific Airbnb insurance policy, like the kind we provide at Pikl, is tailored to the extensive needs of Airbnb hosts. It covers everything from damage and theft to legal cover revolving around guests, giving you complete confidence knowing that you have extensive protection in case something goes wrong.
For anyone looking to invest in or listing a new property, you should also consider whether the building is in a flood risk area, if there’s subsidence, and the type of security in place. Taking preventative action and reducing the property’s vulnerability to risks may be costly in the short-term but can help you avoid hefty future financial hits, especially if your property is damaged and this results in a loss of rental income.”
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Millie is a perfectionist with a passion for property and writing articles. You’ll find her researching the latest housing trends and the newest up and coming areas worth investing in. Read more about Millie here.
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