Paddington - Kensington

As of June 2026, Paddington, Kensington, Notting Hill, Westminster have 4,991 active Airbnb and VRBO listings. This represents a 13% decrease from the previous year.

The average Airbnb or VRBO in Paddington - Kensington generates £57K per year. High-performing properties earn £134K/year, while low-performing properties earn £20K/year. Declining supply alongside flat revenue suggests tightening inventory, yet the wide performance gap indicates significant variation in unit economics—some properties capture disproportionate demand while others struggle at 47% occupancy.

Airbnb and VRBO can be profitable in Paddington - Kensington. Average annual revenue is £57K with 47% occupancy. High-performing properties earn up to £134K/year. Declining supply combined with flat revenue suggests tightening competition, yet the substantial gap between average and high performers indicates market differentiation remains significant for well-positioned listings.

The average occupancy rate for Airbnbs and VRBOs in Paddington - Kensington is 47%. This occupancy level, combined with an average nightly rate of £306, results in a RevPAR (revenue per available room) of £108 per day.

4+ bedroom properties demonstrate the strongest performance in Paddington - Kensington, with annual revenue of £118K. These properties balance operating costs and rental demand most effectively in the Paddington - Kensington market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Paddington - Kensington area. Paddington: Strict. Part of Westminster - 90-day annual limit for entire homes, registration required via planning permission for longer stays. Active enforcement with significant fines up to £20,000. Kensington: Strict. Royal Borough enforces 90-day rule vigorously, requires planning permission beyond limit. Heavy fines, active monitoring of platforms. Notting Hill: Strict. Part of Kensington & Chelsea - same 90-day cap, planning permission needed beyond. Proactive enforcement, substantial penalties. Westminster: Strict. 90-day limit citywide, registration mandatory for longer. Very active enforcement, £20,000+ fines, platform cooperation. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Paddington - Kensington Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 13% year-over-year, while RevPAR has decreased 5%. This indicates balanced supply-demand dynamics. The wide gap between average revenue ($57,294) and top performers ($133,984) suggests significant performance variance, reflecting differentiated positioning within a moderately competitive market where 47% occupancy leaves room for optimization.

Launch around September, 2-3 months before peak fall season (December peaks). This pre-peak timing lets you build reviews when competition is -14% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (May-January) when gaining traction is harder.

The most common amenities in Paddington - Kensington listings include: Kitchen (95%), Washing Machine (92%), Tv (87%), Heating (76%), Parking (30%). Amenities that boost revenue the most include Air Conditioning, Washing Machine, Tv, with Air Conditioning properties earning approximately 49% more (£99K/year vs £67K/year).

Monthly estimated revenue per listing in Paddington - Kensington over the last 12 months: May: £3K, June: £4K, July: £4K, August: £3K, September: £3K, October: £4K, November: £3K, December: £4K, January: £2K, February: £2K, March: £3K, April: £4K. 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 Paddington - Kensington is £306, up 7% year-over-year. By property size: 1-bedroom properties average £201/night, 2-bedroom properties average £367/night, 3-bedroom properties average £555/night, 4+ bedroom properties average £807/night. Rates peak in December and are lowest in February.

Guests in Paddington - Kensington book an average of 38 days in advance, down 17% from last year. By property size: 1-bedroom: 36 days, 2-bedroom: 40 days, 3-bedroom: 40 days, 4+ bedroom: 45 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Paddington - Kensington Airbnb and VRBO market has seen the following changes: supply declined 13%, revenue per listing decreased 5%, occupancy rose 5%, average nightly rates increased 7%, and lead time decreased 17%. The combination of shrinking supply and rising rates despite falling per-listing revenue suggests a bifurcated market where premium properties command significantly higher returns—evidenced by the wide gap between average ($57,294) and top-performing listings ($133,984)—while mid-tier inventory faces margin compression.

In Paddington - Kensington, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Saturday and are lowest on Wednesday. Weekends show 16% higher occupancy than weekdays.