Bradford is the best city in the UK to be an Airbnb host

Analysis reveals Bradford offers the best combination of low real estate prices and high Airbnb earnings

It would take nine years of Airbnb income to pay off a Bradford property purchase vs. 42 years in Luton

Luton, London and Leicester are the least profitable cities in the UK to be an Airbnb host

Bradford is the most profitable city in the UK to be an Airbnb host, a new study has found.

The search for international payment experts RationalFX across 27 major UK cities, analyzed data from AirDNA and ONS to find which UK city offers the best combination of low house prices and high income from renting through Airbnb.

He revealed that it would only take nine years to pay off the median price of a house in Bradford (£ 135,000) based on the average monthly income of £ 1,229 generated by an Airbnb in the city. As a result, the city of Yorkshire tops the list, offering the best combination of low house prices and high incomes.

Swansea came in second, with an average of £ 1,100 in Airbnb income, it took 10 years to pay off the city’s median property price of £ 143,500. In addition, a high occupancy rate of 62% over the past 12 months makes the Welsh seaside town very popular with guests.

During the pandemic, there has been a surge in interest in vacations instead of vacations abroad. Research conducted in 2020 found that 42.7% of people would prefer to enjoy a stay compared to 24.7% of people voting to go abroad.

In addition, 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 of less than £ 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 stays has increased dramatically over the past year amid the pandemic, showing that the private vacation rental industry is an area of ​​focus. for investment. With the easing of restrictions in the UK, it will be interesting to see how Airbnb bookings in the UK compete with the vacation abroad option.

Top five best cities to be an Airbnb host, by RationalFX

General classification CITY MONTHLY INCOME (AIRDNA) OCCUPANCY RATE PER YEAR (JUNE 2021) (AIRDNA) MEDIAN HOUSE PRICE DEC. 2020 (ONS) ACTIVE RENTAL (AIRDNA) Years of Airbnb income needed to cover the price of real estate
1 Bradford £ 1,229 83% £ 135,000 518 9
2 Swansea £ 1,100 62% £ 143,500 1313 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 in monthly income, with properties in the city generating an average of £ 1,649 per month. However, it also has the third highest median house price on the list at £ 367,500, meaning it would take over 18 years to cover the cost of the property. As a result, the popular vacation destination ranks 14th on the list.

Holidaymakers can expect to pay an average of £ 142 per night to stay at an Airbnb in London, the country’s most expensive city, compared to £ 63 a night in Sunderland, the UK’s lowest rate. 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. This is more than seven times higher than Edinburgh, the city with the second highest active rents (5,350).

Despite the high number of rentals, London ranks 26th out of 27 cities for profitability. The median property price is significantly higher than the rest of the UK, at £ 475,000, and only ranks 11th for Airbnb income, 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 least 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 30 years for an average Airbnb host in the city to pay off a property. The city in the East Midlands ranks third on the bottom of 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 London alone in the study.

The analysis was conducted by RationalFX, which is a leading international payment provider in Europe, helping businesses and individuals streamline their bank-to-bank transfers with smart global payment solutions.

Top five worst cities to be an Airbnb host, by RationalFX

General classification CITY MONTHLY INCOME (AIRDNA) OCCUPANCY RATE PER YEAR (JUNE 2021) (AIRDNA) MEDIAN HOUSE PRICE DEC. 2020 (ONS) ACTIVE RENTAL (AIRDNA) Years of Airbnb income 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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