London

As of May 2026, London has 4,395 active Airbnb and VRBO listings. This represents a 9% decrease from the previous year.

The average Airbnb or VRBO in London generates £74K per year. High-performing properties earn £168K/year, while low-performing properties earn £24K/year. This massive variance between the top and bottom tiers suggests that market returns are highly sensitive to property positioning, as the supply contraction has not lifted all boats equally.

Airbnb and VRBO can be profitable in London. Average annual revenue is £74K with 51% occupancy. High-performing properties earn up to £168K/year. The gap between average and top performers indicates that revenue concentration is high, highlighting a market where operational excellence significantly outpaces the broader average yield.

The average occupancy rate for Airbnbs and VRBOs in London is 51%. This occupancy level, combined with an average nightly rate of £348, results in a RevPAR (revenue per available room) of £145 per day.

4+ bedroom properties demonstrate the strongest performance in London, with annual revenue of £164K. These properties balance operating costs and rental demand most effectively in the London market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the London area. London: Moderate. Registration required (90 days/year limit for whole properties unless planning permission obtained). Owner-occupancy not required. No density caps. Enforcement exists but inconsistent—many hosts operate beyond 90-day limit with limited consequences. Councils vary in enforcement vigor; some active, others reactive only. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The London Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 9% year-over-year, while RevPAR has increased 2%. This indicates balanced supply-demand dynamics. The shrinking inventory alongside rising revenue suggests a stabilizing market environment that is increasingly favorable for existing operators.

Launch around September, 2-3 months before peak fall season (December peaks). This pre-peak timing lets you build reviews when competition is 0% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (March-January) when gaining traction is harder.

The most common amenities in London listings include: Kitchen (93%), Washing Machine (92%), Tv (87%), Heating (75%), Elevator (33%). Amenities that boost revenue the most include Air Conditioning, Washing Machine, Internet, with Air Conditioning properties earning approximately 45% more (£115K/year vs £79K/year).

Monthly estimated revenue per listing in London over the last 12 months: May: £4K, June: £5K, July: £5K, August: £4K, September: £5K, October: £5K, November: £5K, December: £6K, January: £3K, February: £3K, March: £4K, April: £5K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in London is £348, up 5% year-over-year. By property size: 1-bedroom properties average £219/night, 2-bedroom properties average £420/night, 3-bedroom properties average £691/night, 4+ bedroom properties average £944/night. Rates peak in July and are lowest in February.

Guests in London book an average of 39 days in advance, down 16% from last year. By property size: 1-bedroom: 38 days, 2-bedroom: 41 days, 3-bedroom: 41 days, 4+ bedroom: 43 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the London Airbnb and VRBO market has seen the following changes: supply declined 9%, revenue per listing increased 2%, occupancy rose 7%, average nightly rates increased 5%, and lead time decreased 16%. These metrics point to a tightening market where reduced supply is effectively driving higher asset utilization and pricing power.

In London, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Saturday and are lowest on Wednesday. Weekends show 15% higher occupancy than weekdays.