The study revealed the top 10 places hosts should look to list an Airbnb property.
Which city ranks best for Airbnb hosts?
Dundee takes the top spot, with the average price per night reigning above any other city in the UK. Although projected monthly revenues are lower than other cities, quarterly rent growth of 16% and other growth data point to the area’s growing popularity, making Dundee a great investment location for Airbnb hosts. This year.
Unsurprisingly, the City of London comes in second with the second highest average price per night and a quarterly growth rate of 21%, making it a consistently great place to have an Airbnb listing.
Brighton & Hove comes next. The popular beach destination is only growing and growing when it comes to Airbnb earnings, with the rental growth market here increasing by 27%.
Bath is in 4th place with an expected monthly income of £2,300+, as well as a rental growth rate of 16% similar to Dundee.
Following this, Chichester ranks 5th with the highest quarterly growth rate among the 69 UK cities, at a whopping 28%. This West Sussex town is definitely one to watch for Airbnb hosts considering expanding into new areas.
Edinburgh, Bristol, York, Cardiff and Portsmouth occupy the bottom 5 places, all with the potential to earn between £1.7,000 and £2.3,000 in income per month, with “promising” growth trends in these cities.
What should investors consider?
Before becoming an Airbnb host, the experts at Pikl Insurance advise researching your location as it can give you a good indication of how much money you are likely to make in your area.
“If you are seriously considering starting an Airbnb hospitality business, this can also be a great indication of which parts of the UK will benefit you the most in terms of occupancy, market growth rate and overall profit,” they said.
“Location isn’t the only factor that can impact your income, either. Factors such as length of stay, prices and how you present your listing can also have a big impact on your short-term rental income.
Pikl adds that hidden costs can also reduce your profits, such as not having the right insurance coverage if someone damages your property.
Airbnb’s “Aircover” should not be considered a replacement for having the right insurance and many hosts often require additional coverage to give them more protection. A specific Airbnb insurance policy, such as the one we offer at Pikl, is designed to fill these types of gaps in coverage and give you the confidence in knowing that you have more extensive protection should something go wrong.
“It covers everything from theft and damage to legal cover when it comes to guests. It’s really important to consider your insurance coverage before diving into Airbnb hosting to protect your property and ultimately your income as well.
Other factors to consider when buying a property are things like how close the building is to a flood risk area, subsidence or what kind of security it has.
“Reducing your potential exposure to things that may cost you more money in the long run can help you avoid potential future costs when considering your purchase,” Pikl said. “If your property was flooded, for example, you could potentially lose rental income while that was being fixed.”
Top 10 ideal places hosts should look to list an Airbnb property:
|
Ranking
|
Town
|
Average price per night
|
Expected income per month
|
Quarterly rent growth
|
|
1
|
Dundee
|
£279
|
£1900
|
16%
|
|
2
|
City of London
|
£263
|
£1900
|
21%
|
|
3
|
Brighton and Hove
|
£212
|
£2300
|
27%
|
|
4
|
Bath
|
£204
|
£2300
|
16%
|
|
5
|
Chichester
|
£202
|
£2000
|
28%
|
|
6
|
Edinburgh
|
£208
|
£2100
|
19%
|
|
seven
|
Bristol
|
£174
|
£2300
|
16%
|
|
8
|
york
|
£179
|
£2200
|
16%
|
|
9
|
Cardiff
|
£207
|
£1700
|
17%
|
|
ten
|
Portsmouth
|
£189
|
£1800
|
24%
|
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