Investors looking to capitalise on the continued growth and popularity of short-term rentals in the UK should focus on identifying up-and-coming locations poised for strong price appreciation and high occupancy rates. The property investment experts at API Global have analysed market data and identified the 10 best places to buy Airbnb property in the UK for maximum returns.
The 10 Best Places for Airbnb in the UK
International investors looking to diversify into the UK market or local investors seeking high-yielding assets should have these 10 UK cities on their list.
| City | Average Property Price | Property Price Growth in the Past 5 Years | Airbnb Monthly Revenue | Average Rental Yield | Occupancy Rate |
| Manchester | £247,000 | 17% | £1,582 | 6–7% | 56% |
| Liverpool | £198,000 | 11% | £1,606 | 4–9% | 48% |
| Birmingham | £280,000 | 12% | £1,426 | 4.36% | 55% |
| Kent (Ashford) | £395,000 | 10% | £3,393 | 4% | 79% |
| Nottingham | £243,000 | 15% | £679 | 8.95% | 58% |
| Leeds | £231,000 | 18% | £768 | 5.97% | 55% |
| Bristol | £384,000 | 14% | £1,064 | 7% | 70% |
| Edinburgh | £337,000 | 38% | £2,987 | 4–6% | 86% |
| Brighton | £516,000 | 7.5% | £2,177 | 4.6% | 67% |
| London | £536,000 | 9% | £2,615 | 4.6% | 77% |
1. Manchester
- Average Property Price: £247,000
- Property Price Growth in the Past 5 Years: 17%
- Airbnb Monthly Revenue: £1,582
- Average Rental Yield: 6–7%
- Occupancy Rate: 56%
Manchester is one of the best places for Airbnb. As one of the UK’s major cities, Manchester offers strong rental demand and opportunities for capital appreciation. The city has a large student population and workforce, ensuring consistent demand for rental accommodation.
Property prices in Manchester have been growing steadily over the past decade. In the past 5 years, property prices have grown by almost 20%, with room for further increase. Moreover, occupancy rates average 56%, making Manchester one of the top cities for buy-to-let investment.
Within Manchester, the Northern Quarter and Ancoats are two of the city’s most up-and-coming areas. New developments like the Victoria House, Viadux, and Pavilion Wharf are attracting businesses and residents to the city centre. Transport links are also improving, with additional tram lines and train services planned. All of these factors point to solid growth potential for Airbnb property investments in Manchester over the coming years.
2. Liverpool
- Average Property Price: £198,000
- Property Price Growth in the Past 5 Years: 11%
- Airbnb Monthly Revenue: £1,606
- Average Rental Yield: 4–9%
- Occupancy Rate: 48%
Liverpool is a top location to buy property for Airbnb, with significant opportunities for capital growth and rental income in the long term. Located in the North West of England, Liverpool has become a popular tourist destination. Its proximity to Manchester Airport also makes it easily accessible for overseas visitors.
Investing in property in Liverpool allows investors to tap into several lucrative markets, including both short-term rentals and student housing. With rental yields of 4–9% and occupancy rates of almost 50%, Airbnb property investors can generate steady income within the city.
Overall, Liverpool provides an exciting opportunity for Airbnb property investors seeking strong capital and rental growth. The city’s tourism and student sectors are thriving, and continued regeneration will further boost Liverpool’s appeal. Now is the ideal time to invest for the highest returns over the coming years.
3. Birmingham
- Average Property Price: £280,000
- Property Price Growth in the Past 5 Years: 12%
- Airbnb Monthly Revenue: £1,426
- Average Rental Yield: 4.36%
- Occupancy Rate: 55%
Birmingham is located in the West Midlands region of England and is popularly known as the UK’s second-largest city. With a population of over 1 million, Birmingham offers solid fundamentals for property investment and positions itself as one of the best Airbnb locations in the country. The city has a diverse economy with major employers in manufacturing, technology, and financial services.
For property investors, Birmingham provides an affordable entry point into the UK market with a median home value of under £235,000. The city has a sizable student population, driving demand for rental accommodations.
New developments around the city centre and Digbeth offer contemporary flats and apartments appealing to young professionals. Moreover, the regeneration of Birmingham’s canal network will further boost Birmingham’s connectivity and attractiveness.
In terms of neighbourhoods, investors should consider up-and-coming areas such as Digbeth, Highgate, and Jewellery Quarter for the best opportunities for price appreciation and rental returns. These inner-city districts are located within proximity to Birmingham’s main cultural attractions and nightlife, popular with students and millennials.
4. Kent (Ashford)
- Average Property Price: £395,000
- Property Price Growth in the Past 5 Years: 10%
- Airbnb Monthly Revenue: £3,393
- Average Rental Yield: 4%
- Occupancy Rate: 79%
Kent, located in the southeast region of England, is one of the best Airbnb markets in 2024 and beyond. With its desirable countryside scenery and proximity to London, Kent offers attractive rental yields and significant potential for capital growth.
Ashford, a market town in Kent positioned at the intersection of two major rail lines, provides convenient transport links to London, making it an appealing commuter town. Property prices in Ashford have increased by 10% over the past 5 years, and future projections are promising.
For international investors seeking strong returns, new developments in Ashford represent an opportunity to benefit from increasing demand for rental accommodation from London commuters.
5. Nottingham
- Average Property Price: £243,000
- Property Price Growth in the Past 5 Years: 15%
- Airbnb Monthly Revenue: £679
- Average Rental Yield: 8.95%
- Occupancy Rate: 58%
Nottingham, located in the East Midlands region of England, is an up-and-coming location for Airbnb investment property. According to API Global’s market analysis, Nottingham’s property prices have risen by 15% over the past five years, and occupancy rates are at a solid 58%.
Here are 3 factors that make Nottingham stand out for Airbnb investment:
- Low Entry Costs: Nottingham provides investors with affordable entry points to the UK property market. The average property price in Nottingham is £243,000, well below the national average of £291,000. Investors can find good value in the city’s trendy suburbs like West Bridgford and the new Phase II units of the Trent Bridge Quays.
- Growing Tourism: Nottingham welcomes over 33 million visitors annually who contribute £2 billion to the local economy. Tourists flock to see attractions like Nottingham Castle, Wollaton Hall, and the original Robin Hood film locations. The increasing number of visitors translates to greater demand for Airbnb rentals.
- Major Businesses: Top employers like Experian, Capital One, and HM Revenue and Customs are headquartered in Nottingham, bringing many business travellers to the city. Corporate visitors prefer alternative accommodations like Airbnb, especially for longer stays. Investors can earn premium rates by renting to business travellers.
6. Leeds
- Average Property Price: £231,000
- Property Price Growth in the Past 5 Years: 18%
- Airbnb Monthly Revenue: £768
- Average Rental Yield: 5.97%
- Occupancy Rate: 55%
As one of the largest cities in Northern England, Leeds has seen substantial regeneration and investment over the past decade, making it one of the best places to buy Airbnb property. New developments like the Victoria Gate shopping centre and the Kirkstall Forge community have revitalised areas of the city centre and attracted major employers. The student population also provides a stable market for short-term rentals.
Leeds is attractive to property investors due to its combination of robust demand, solid growth potential, and more affordable home prices than southern cities. The average asking price for a home in Leeds is £231,000, compared to £536,000 in London. House prices rose by 18% over the past 5 years, and projections for the future may follow a similar trend.
Areas like Burley, Headingley, and Hyde Park are popular with students and young professionals, driving demand for rentals. New build flats and trendy warehouse conversions around the South Bank also appeal to tenants looking for stylish city living at a lower cost.
With its mix of affordability, livability, and growth potential, Leeds deserves strong consideration as an Airbnb investment location. For buy-to-let investors, the city offers opportunities to build a property portfolio that will generate solid returns for years to come. Overall, Leeds exhibits many of the attributes that signal a thriving city primed for property investment.
7. Bristol
- Average Property Price: £384,000
- Property Price Growth in the Past 5 Years: 14%
- Airbnb Monthly Revenue: £1,064
- Average Rental Yield: 7%
- Occupancy Rate: 70%
Bristol is a historic port city in southwest England that’s attracting a new wave of interest from those seeking to buy property for Airbnb. Home to a youthful, creative population and two prestigious universities, Bristol has become a hub for digital tech and media companies. This innovative spirit, combined with a shortage of housing, has led to an increase in property values.
The average house price in Bristol has increased by about 14% in the last 5 years. Demand for property remains stable while available land is scarce within the city limits. These factors point to continued price growth, especially in up-and-coming neighbourhoods where values haven’t yet peaked. Investors seeking capital appreciation in addition to rental income would be well-positioned to benefit from Bristol’s thriving property market over the next several years.
Overall, Bristol exhibits the characteristics of a top-tier investment location. A youthful, growing population, shortage of housing, and vibrant local economy have combined to produce rising property values and rental demand. For investors seeking opportunities in resilient UK markets, Bristol deserves strong consideration.
8. Edinburgh
- Average Property Price: £337,000
- Property Price Growth in the Past 5 Years: 38%
- Airbnb Monthly Revenue: £2,987
- Average Rental Yield: 4–6%
- Occupancy Rate: 86%
Edinburgh is the capital of Scotland, a UNESCO World Heritage site, and one of the UK’s most popular tourist destinations. Its stunning architecture, historic charm, and natural beauty draw over 4 million visitors annually. For property investors interested in the best Airbnb locations, Edinburgh offers solid opportunities for both capital growth and rental income.
The city has a diverse economy based around finance, tourism, higher education, and tech. Major employers include the University of Edinburgh, Royal Bank of Scotland, and Skyscanner. This economic stability and job growth help support housing demand and price increases. Historically, Edinburgh property values have appreciated steadily at around 7% annually.
For buy-to-let investors, Edinburgh’s consistent tourism and student populations provide a ready market for short-term rentals and family apartments. Investors can expect rental yields of 4–6% for standard properties. New luxury or serviced apartments in desirable city-centre locations may achieve 7% or higher.
9. Brighton
- Average Property Price: £516,000
- Property Price Growth in the Past 5 Years: 7.5%
- Airbnb Monthly Revenue: £2,177
- Average Rental Yield: 4.6%
- Occupancy Rate: 67%
As an up-and-coming coastal city, Brighton offers Airbnb investment property enthusiasts strong potential for capital growth and rental returns over the coming years.
Located just 90 minutes from London, Brighton is a popular seaside destination that attracts both domestic and international visitors. Its vibrant food scene, nightlife, arts, and music culture have led to Brighton developing a reputation as a hub for creativity. These factors, combined with a shortage of housing and limited opportunities for new development, indicate promising prospects for property values and rental demand.
According to our research at API Global, the average property price in Brighton increased by 7.5% in the past 5 years. Occupancy rates within the city are at an impressive 67%, with two- and three-bedroom flats near the city centre and seafront seeing the most patronage. Investors seeking stable income may consider one- and two-bedroom flats — they generate solid rental yields of up to 4.6% due to consistent tenant interest.
10. London
- Average Property Price: £536,000
- Property Price Growth in the Past 5 Years: 9%
- Airbnb Monthly Revenue: £2,615
- Average Rental Yield: 4.6%
- Occupancy Rate: 77%
London is the UK’s largest city and a top destination for Airbnb property investment. As the capital city, London offers strong growth potential and high rental demand. Based on our analysis, London house prices have seen a 9% increase over the last 5 years.
Prime Central London, including areas like Kensington, Chelsea, and Westminster, is considered a premier investment location. Property values in these areas have historically outperformed the wider London market.
Luxury flats and townhouses attract high-income tenants and deliver substantial rental returns of up to 4.6% per annum. Investors seeking capital appreciation should consider Prime Central London, where the rental yields are highest.
In summary, London provides a multitude of opportunities for property investment with the potential for substantial returns over both the short and long term. For buy-to-let investors and those seeking capital growth, London should be on the list when looking for the best places to buy Airbnb property in the UK. With its world-class universities, globally recognised cultural institutions, and position as a preeminent international business hub, the city will likely remain the UK’s most prized property investment destination for decades to come.
Frequently Asked Questions
Is Airbnb a good investment?
Yes, Airbnb is a good investment in the UK. However, investors should consider factors that can greatly influence their return on investment, such as the location of the property, local regulations, competition, and market demand.
In popular tourist destinations or cities with a high demand for short-term rentals, Airbnb can potentially offer higher income than traditional long-term leases. However, it’s important to consider the extra time, effort, and cost involved in managing short-term rentals. These properties require frequent cleaning and maintenance and may experience higher wear and tear.
Furthermore, some areas in the UK have introduced restrictions and regulations on short-term rentals, which could impact profitability. Therefore, it’s crucial to research local laws and market conditions before investing in a property for Airbnb.
Remember, while Airbnb can be profitable, it’s not without risks and challenges. It’s always a good idea to seek advice from a property investment expert before making a decision.
Where is the best place to own an Airbnb in the UK?
Birmingham, Nottingham, Liverpool, Ashford in Kent, and Manchester are some of the best places to own an Airbnb in the UK. Investors should consider their investment goals, budget, the amount of time they’re able to dedicate to managing the property, and their familiarity with the local rental market. These factors could affect their success as an Airbnb host.
How much income can you make from Airbnb in the UK?
The average UK Airbnb host earns over £6,000 per year. However, in high-demand areas like London or Birmingham, hosts can often earn significantly more.
Moreover, it’s worth noting that hosts who offer unique stays, like treehouses or tiny houses, often command higher nightly rates and have higher occupancy rates, which can significantly increase their annual income.
While these figures give a rough idea of potential earnings, actual income can vary greatly. Also, it’s essential to consider the costs associated with hosting on Airbnb, such as cleaning, maintenance, insurance, and taxes.
Conclusion
For investors looking for the best places to buy Airbnb property in the UK, the locations outlined in this article offer enticing opportunities for strong capital growth and healthy rental yields. With demand for short-term rentals continuing to rise across the country, especially in scenic and well-connected areas, investors should act now to secure an ideal investment property before prices climb higher. Contact your wealth manager today to kickstart your Airbnb property investment journey!
Disclaimer: Any information API Global provides does not constitute financial advice and is for educational purposes only.
