Analysis finds Bradford offers the best combination of low house prices and high Airbnb income
It would take nine years of Airbnb income to repay a property purchase in Bradford compared to 42 years in Luton
Luton, London and Leicester are the least profitable cities in the UK to be an Airbnb host
A new study has found that Bradford is the most profitable city in the UK to be an Airbnb host.
Research by international payment experts RationalFX of 27 major UK cities analyzed data from AirDNA and the ONS to find which UK city offers the best combination of low house prices and high rental income through Airbnb.
He revealed that it would take just nine years to pay off the median property price in Bradford (£135,000) based on the average monthly income of £1,229 generated by an Airbnb in the town. As a result, the Yorkshire town tops the list, offering the best combination of low property prices and high income.
Swansea came second, with an average of £1,100 in Airbnb revenue taking 10 years to pay off the city’s median property price of £143,500. In addition, a high occupancy rate of 62% over the last 12 months makes the famous Welsh seaside town very profitable for guests.
During the pandemic, there has been a surge in interest in staycations instead of vacations abroad. Research in 2020 found that 42.7% of people would prefer to enjoy a staycation compared to 24.7% of people voting to go abroad.
Additionally, property investors could also take advantage of the government’s stamp duty exemption for the first £250,000 of a property, which is available until September. Of the 27 cities analyzed, 18 have a median house price below £250,000.
Stoke-On-Trent was the third most profitable city to be an Airbnb host. With a monthly income rate of £1,030, it would take 12 years to pay off the city’s median house price of £151,000.
Bradford has the highest annual occupancy rate (83%), followed by Brighton with 71%, and Bournemouth and Plymouth with 70%.
Commenting on the study, a spokesperson for RationalFX said: “Demand for vacation rentals has increased significantly over the past year amid the pandemic, which shows that the private vacation rental business is an area of growth. investment interest. With the easing of restrictions in the UK, it will be interesting to see how Airbnb bookings in the UK will compete with the overseas holiday option.
The five best cities to be an Airbnb host, by RationalFX
| General classification | CITY | MONTHLY REVENUES (AIRDNA) | OCCUPANCY RATE PER YEAR (JUNE 2021) (AIRDNA) | MEDIAN HOUSE PRICE DEC. 2020 (ONS) | ACTIVE RENTALS (AIRDNA) | Years of Airbnb revenue needed to cover the price of real estate |
| 1 | Bradford | £1,229 | 83% | £135,000 | 518 | 9 |
| 2 | Swansea | £1,100 | 62% | £143,500 | 1,313 | 11 |
| 3 | Stoke-on-Trent | £1,030 | 48% | £151,000 | 676 | 12 |
| 4 | Plymouth | £1,200 | 70.0% | £197,000 | 611 | 14 |
| 5 | Belfast | £764 | 57% | £128,300 | 875 | 14 |
The study found that Brighton ranks first for monthly income, with properties in the city generating an average of £1,649 per month. However, it also has the third-highest median price on the list at £367,500, meaning it would take over 18s to cover the cost of ownership. As a result, the popular vacation destination ranks 14th on the list.
Holidaymakers can expect to pay an average of £142 per night for an Airbnb stay in London, the country’s most expensive city, compared to £63 per night in Sunderland, the lowest rate in the UK. However, the capital ranks among the least profitable areas to be an Airbnb host.
London has 37,000 active rentals, making it the city with the most Airbnbs in the UK. That’s more than seven times higher than Edinburgh, the city with the second-highest active rental of 5,350.
Despite the high number of rentals, London ranks 26th out of 27 cities in terms of profitability. It has a significantly higher median property price than the rest of the UK, standing at £475,000, and only ranks 11th in Airbnb revenue, with the average property generating £1,011. £.
Leicester is the 10th largest city in the UK, but it has just 455 active rentals – the third lowest on the list, with an occupancy rate of 33% per year, the lowest of any city measured. With the lowest monthly income of £600 and a median property price of £218,000, it would take the average Airbnb host in the city 30 years to pay off a property. The East Midlands town ranks third on the list.
Luton is the least profitable city to buy an Airbnb in the UK. It would take 42 years for a host to earn the money to cover the cost of their property. The city’s Airbnbs have an occupancy rate of 48% and the median house price is £375,000 – behind only London in the study.
The analysis was conducted by RationalFX, which is one of Europe’s leading international payments providers, helping businesses and individuals streamline their bank-to-bank transfers with smart global payment solutions.
The five worst cities to be an Airbnb host, by RationalFX
| General classification | CITY | MONTHLY REVENUES (AIRDNA) | OCCUPANCY RATE PER YEAR (JUNE 2021) (AIRDNA) | MEDIAN HOUSE PRICE DEC. 2020 (ONS) | ACTIVE RENTALS (AIRDNA) | Years of Airbnb revenue needed to cover the price of real estate |
| 23 | Southampton | £997 | 63% | £300,000 | 711 | 25 |
| 24 | Coventry | £720 | 50.0% | £218,600 | 691 | 25 |
| 25 | Leicester | £600 | 33% | £218,000 | 455 | 30 |
| 26 | London | £1,011 | 48% | £475,000 | 37,550 | 39 |
| 27 | Luton | £738 | 48% | £375,000 | 310 | 42 |
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