Buying real estate in the UK?

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How profitable are Airbnb rentals in the UK? (2026)

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Authored by the expert who managed and guided the team behind the United Kingdom Property Pack

buying property foreigner The United Kingdom

Everything you need to know before buying real estate is included in our United Kingdom Property Pack

Running an Airbnb in the UK can be profitable, but rules vary dramatically between England, Scotland, Wales, and cities like London and Edinburgh.

This guide covers short-term rental regulations, realistic earnings, and which property types perform best across British markets in 2026.

We constantly update this blog post with fresh data on UK housing prices and Airbnb profitability.

And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in the UK.

Insights

  • London's 90-night annual cap means entire-home hosts without planning permission are capped at roughly £18,000 gross revenue per year, fundamentally changing profitability compared to other UK cities.
  • Scotland requires a mandatory short-term let licence before accepting any bookings, and operating without one is a criminal offence with fines reaching several thousand pounds.
  • Two-bedroom properties consistently outperform other configurations in UK Airbnb markets because they capture the widest guest pool, from couples to small families to friend groups.
  • Top-performing UK hosts achieve 62% to 70% annual occupancy, while average listings sit around 45% to 55%, creating a significant monthly income gap.
  • The most saturated UK neighborhoods are Soho, Covent Garden, and South Kensington in London, plus Edinburgh's Old Town and New Town.
  • Pet-friendly coastal cottages in Cornwall and the Lake District represent clear "white space" opportunities, as domestic demand for dog-friendly stays far outpaces supply.
  • Edinburgh Fringe in August can spike nightly rates by 100% to 200%, making it the single most lucrative short-term rental event in the UK calendar.
  • UK hosts should expect operating expenses of 25% to 40% of gross revenue when self-managing, or 40% to 55% with professional management.
photo of expert laurence rapp

Fact-checked and reviewed by our local expert

✓✓✓

Laurence Rapp 🇬🇧

Sales representative at Spot Blue - International Real Estate Agency

Laurence knows the UK property market inside out and is passionate about helping clients find the perfect home or investment. At Spot Blue, he’s here to guide you to your dream property, whether it’s a charming countryside home or a stylish city apartment. We engaged in a conversation with him and used him feedback to fine-tune the blog post, adding details and his personal perspective.

Can I legally run an Airbnb in the UK in 2026?

Is short-term renting allowed in the UK in 2026?

As of early 2026, short-term renting is allowed across the UK, but rules differ significantly between England, Scotland, Wales, and specific cities like London and Edinburgh.

The main framework varies by nation: England is developing a national registration scheme, Scotland requires mandatory licensing, and Wales is moving toward its own licensing system.

The most important restriction is London's 90-night annual cap, limiting how many nights you can rent an entire property without planning permission.

Scotland also requires hosts to obtain a licence before accepting bookings, and areas like Edinburgh require planning permission for secondary letting in designated control areas.

Operating illegally can result in council enforcement, fines of several thousand pounds, and in Scotland, potential criminal prosecution.

For a more general view, you can read our article detailing what exactly foreigners can own and buy in The United Kingdom.

If you are an American, you might want to read our blog article detailing the property rights of US citizens in The United Kingdom.

Sources and methodology: we cross-referenced official UK government guidance with devolved government pages for Scotland and Wales. We reviewed London City Hall guidance and mygov.scot for Scottish licensing. Our analysis combined these with GOV.UK documentation.

Are there minimum-stay rules and maximum nights-per-year caps for Airbnbs in the UK as of 2026?

As of early 2026, there is no UK-wide minimum-stay requirement or nights cap, but Greater London enforces a strict 90-night annual limit for entire-home rentals without planning permission.

These rules differ by property type: in London, home-sharing is not subject to the 90-night cap, while entire secondary homes face the full restriction unless planning permission is granted.

London hosts track rental nights through booking platforms and their own records, as councils can request compliance evidence during investigations.

Exceeding the 90-night cap without planning permission risks council enforcement action, including orders to cease letting and potential fines.

Sources and methodology: we anchored our analysis in London City Hall guidance and Deregulation Act 2015 notes. We verified with Royal Borough of Kensington & Chelsea guidance.

Do I have to live there, or can I Airbnb a secondary home in the UK right now?

There is no UK-wide requirement to live in a property to rent it on Airbnb, so secondary homes can legally be used for short-term letting in most areas.

However, secondary homes face the toughest scrutiny: in London, they hit the 90-night ceiling, and in Edinburgh, secondary entire-home letting can require planning permission.

Additional permits for non-primary residences include planning permission in London for stays beyond 90 nights, and both a licence and potentially planning permission in Scotland.

The main difference is that home-sharing from your main residence faces fewer restrictions, while entire secondary homes are the primary target of tightening regulations.

Sources and methodology: we used mygov.scot licensing guidance and City of Edinburgh Council planning statements. We cross-checked with London City Hall.

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housing market the UK

Can I run multiple Airbnbs under one name in the UK right now?

Yes, you can operate multiple Airbnb listings under one name in the UK, as there is no national cap on properties a single host can list.

The practical limit is compliance per property: each must meet its own licensing, planning, and tax requirements, which becomes complex at scale.

In Scotland, each property needs its own licence, and in London, each entire-home listing is subject to the 90-night cap unless you secure planning permission.

Policymakers scrutinize multi-property hosts because of housing pressure concerns about professional operators removing homes from the long-term rental market.

Sources and methodology: we referenced mygov.scot for per-property licensing and UK Parliament Hansard debates. We combined these with London City Hall guidance.

Do I need a short-term rental license or a business registration to host in the UK as of 2026?

As of early 2026, licensing requirements depend on which nation your property is in: Scotland requires a mandatory licence, England is developing a registration scheme, and Wales is moving toward licensing.

In Scotland, the process typically takes several weeks to months, and you must apply through your local council before accepting any bookings.

Applications generally require proof of ownership or landlord consent, appropriate insurance, fire safety documentation, and building standards confirmation.

Scottish licence costs vary by council but typically range from £200 to £600 initially, with renewal fees due every three years.

Sources and methodology: we used mygov.scot and Scottish Government publications. We referenced GOV.UK for England and Welsh Government for Wales.

Are there neighborhood bans or restricted zones for Airbnb in the UK as of 2026?

As of early 2026, there are no outright neighborhood bans in the UK, but several areas have significantly stricter enforcement that effectively restricts short-term letting.

The strictest areas include central London boroughs: Westminster (Soho, Covent Garden, Marylebone), Kensington & Chelsea (South Kensington, Notting Hill), Camden (Camden Town, Bloomsbury), and Tower Hamlets (Shoreditch, Spitalfields).

In Scotland, Edinburgh's Old Town, New Town, and parts of Leith require planning permission for secondary letting, and councils actively refuse applications to protect housing stock.

Sources and methodology: we identified zones using London City Hall and City of Edinburgh Council policies. We reviewed mygov.scot control area guidance.
infographics comparison property prices the UK

We made this infographic to show you how property prices in the UK compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

How much can an Airbnb earn in the UK in 2026?

What's the average and median nightly price on Airbnb in the UK in 2026?

As of early 2026, the median nightly price for an entire-home UK Airbnb is approximately £145 ($185/€175), while the average sits higher at around £175 ($220/€210) due to premium properties.

The typical range covering 80% of listings spans £95 to £280 ($120 to $355/€115 to €335), with studios at the lower end and three-bedroom family homes at the higher end.

The biggest factor affecting pricing is location: a two-bedroom flat in central London or Edinburgh can command double the rate of an identical property in Newcastle or Sheffield.

By the way, you will find much more detailed profitability rent ranges in our property pack covering the real estate market in the UK.

Sources and methodology: we triangulated STR benchmarks with VisitBritain tourism data. We factored in London's constraints from London City Hall. We cross-referenced Inside Airbnb data.

How much do nightly prices vary by neighborhood in the UK in 2026?

As of early 2026, nightly prices can vary by 70% or more, with prime central London areas like Mayfair averaging £280 ($355/€335) compared to outer suburbs like Croydon at around £100 ($125/€120).

The three highest-priced neighborhoods are Mayfair at approximately £300 ($380/€360), South Kensington at around £260 ($330/€310), and Edinburgh's New Town at roughly £220 ($280/€265) during peak season.

The three lowest among popular destinations are Leyton at around £85 ($110/€100), Gateshead at approximately £75 ($95/€90), and Salford at roughly £80 ($100/€95), though guests still choose these for value and decent transport links.

Sources and methodology: we analyzed neighborhood pricing using Inside Airbnb data. We adjusted for London's constraint using London City Hall. Estimates reflect ONS seasonality patterns.

What's the typical occupancy rate in the UK in 2026?

As of early 2026, the typical annual occupancy rate for UK Airbnb listings is approximately 52%, though this masks significant seasonal swings between summer peaks and winter lows.

The realistic range spans from 38% for struggling properties to 70% for top performers with excellent reviews and competitive pricing.

UK occupancy rates are broadly in line with Western European averages, though coastal and rural listings experience more extreme seasonality than urban counterparts.

The biggest factor for above-average occupancy is maintaining high review scores combined with fast response times, as the algorithm rewards responsive hosts.

Sources and methodology: we anchored estimates on ONS tourism statistics and VisitBritain patterns. London figures adjusted using London City Hall data.

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What's the average monthly revenue per listing in the UK in 2026?

As of early 2026, average monthly gross revenue for a UK Airbnb is approximately £2,600 ($3,300/€3,120), while the median sits at around £2,200 ($2,800/€2,640).

The realistic range covering 80% of listings spans £1,400 ($1,780/€1,680) to £4,500 ($5,700/€5,400), depending on location, size, and timing.

Top performers can achieve £6,000 to £10,000 ($7,600 to $12,700/€7,200 to €12,000) monthly, particularly larger family homes during peak summer. A four-bedroom Cotswolds cottage at £350 per night with 75% August occupancy would gross around £8,000.

Finally, note that we give here all the information you need to buy and rent out a property in the UK.

Sources and methodology: we combined ADR and occupancy using VisitBritain data. We adjusted for London's cap using London City Hall. Calculations cross-referenced Inside Airbnb data.

What's the typical low-season vs high-season monthly revenue in the UK in 2026?

As of early 2026, typical low-season monthly revenue is around £1,200 to £1,800 ($1,520 to $2,280/€1,440 to €2,160), while high-season months generate £3,500 to £6,500 ($4,440 to $8,250/€4,200 to €7,800).

Low season runs November through February (excluding Christmas/New Year), while high season spans June through August plus school half-terms, Easter, and Christmas holidays.

Sources and methodology: we used ONS tourism statistics for seasonality. We applied swings from VisitBritain domestic data. Our calculations used validated internal models.

What's a realistic Airbnb monthly expense range in the UK in 2026?

As of early 2026, monthly operating expenses range from £900 to £1,600 ($1,140 to $2,030/€1,080 to €1,920) for self-managed properties and £1,300 to £2,300 ($1,650 to $2,920/€1,560 to €2,760) for professionally managed listings.

The largest expense is typically cleaning and laundry, especially for properties with frequent short stays, though energy costs have become increasingly significant.

UK hosts should expect expenses to consume 25% to 40% of gross revenue when self-managing, rising to 40% to 55% with professional management.

If you want to go into more details, we also have a blog article detailing all the property taxes and fees in the UK.

Sources and methodology: we anchored utilities on Ofgem price cap data. We referenced GOV.UK business rates for tax status. We incorporated Bank of England rate data.

What's realistic monthly net profit and profit per available night for Airbnb in the UK in 2026?

As of early 2026, realistic monthly net profit for a self-managed UK Airbnb is £900 to £1,500 ($1,140 to $1,900/€1,080 to €1,800), translating to roughly £30 to £55 ($38 to $70/€36 to €66) per available night.

The realistic range spans from £500 ($635/€600) for managed properties in slower markets to £2,000 ($2,540/€2,400) for well-optimized self-managed listings.

UK hosts typically achieve net margins of 35% to 50% when self-managing and 20% to 35% with professional management.

Break-even occupancy is around 35% to 45%, meaning hosts need roughly 10 to 14 booked nights monthly just to cover operating costs.

In our property pack covering the real estate market in the UK, we explain the best strategies to improve your cashflows.

Sources and methodology: we computed net profit from ADR/occupancy models with Ofgem costs and GOV.UK tax guidance. We applied London's constraint from London City Hall.
infographics rental yields citiesthe UK

We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UK versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.

How competitive is Airbnb in the UK as of 2026?

How many active Airbnb listings are in the UK as of 2026?

As of early 2026, there are approximately 350,000 active short-term rental listings across the UK, with 65% to 75% being entire homes and 25% to 35% being private rooms.

This number has grown modestly from 2025, continuing a long-term upward trend that has seen supply roughly double since 2019, though growth has slowed as regulations tightened in London and Edinburgh.

Sources and methodology: we triangulated UK-wide inventory from Inside Airbnb open data. We adjusted for 2026 using modest growth assumptions. Estimates align with VisitBritain supply tracking.

Which neighborhoods are most saturated in the UK as of 2026?

As of early 2026, the most saturated neighborhoods are Soho, Covent Garden, and Marylebone in Westminster, South Kensington and Notting Hill in Kensington & Chelsea, Shoreditch in Tower Hamlets, plus Edinburgh's Old Town and New Town.

These areas became saturated because they combine walkable attractions, excellent transport, vibrant nightlife, and iconic character, meaning every new host competes against thousands of established listings.

Undersaturated neighborhoods with better opportunities include Peckham and Brixton in South London, Kelvinbridge and Finnieston in Glasgow, and Jesmond in Newcastle.

Sources and methodology: we identified saturation using Inside Airbnb density data. We mapped pressure from London City Hall and City of Edinburgh Council.

What local events spike demand in the UK in 2026?

As of early 2026, main events spiking UK Airbnb demand include Edinburgh Fringe in August, Wimbledon in July, Glastonbury in June, Cheltenham Festival in March, Six Nations weekends, and major Premier League matches.

During peak events, hosts see bookings increase 50% to 100% above normal, with nightly prices rising 80% to 200%, particularly Edinburgh during Fringe where prices can triple.

Hosts should adjust pricing 3 to 6 months before major events, as experienced travelers book Edinburgh Fringe accommodation 6 to 12 months ahead.

Sources and methodology: we grounded patterns on ONS tourism statistics and VisitBritain event reporting. We cross-referenced with industry benchmarks.

What occupancy differences exist between top and average hosts in the UK in 2026?

As of early 2026, top-performing UK hosts achieve annual occupancy of 62% to 70%, with the best operators in Manchester and Bristol maintaining even higher rates during peak seasons.

Average hosts achieve 45% to 55% annually, while bottom-quartile listings struggle to reach 30% to 40%, creating a monthly revenue gap exceeding £1,000.

New hosts typically take 6 to 12 months to reach top-performer levels, as building reviews and earning Superhost status takes consistent effort.

We give more details about the different Airbnb strategies to adopt in our property pack covering the real estate market in the UK.

Sources and methodology: we derived spreads from ONS seasonality combined with STR benchmarks. We applied dynamics from VisitBritain analysis.

What amenities do nearly all competitors offer in the UK right now?

In early 2026, baseline amenities include fast Wi-Fi, self check-in, a fully equipped kitchen, a washing machine, controllable heating, strong hot water, and a dedicated workspace.

UK listings outside central London increasingly offer free parking, while pet-friendly policies have become a significant differentiator in the domestic travel market.

Emerging differentiators include EV chargers in drive-to destinations, quality coffee machines, smart TVs with streaming, and local guidebooks with welcome hampers.

Sources and methodology: we derived amenities from VisitBritain preference surveys. We incorporated UK requirements from GOV.UK safety guidance.

Which price points are most crowded, and where's the "white space" for new hosts in the UK right now?

The most crowded price range is £110 to £180 ($140 to $230/€130 to €215) for one and two-bedroom flats, and £160 to £260 ($200 to $330/€190 to €310) for family homes in leisure areas.

White space exists at the premium end above £300 ($380/€360) for unique stays, and in pet-friendly two to three-bedroom properties with parking priced around £200 to £280 ($255 to $355/€240 to €335).

To compete in underserved segments, focus on properties combining family-ready features with pet-friendly policies and proximity to year-round attractions.

Sources and methodology: we analyzed saturation using Inside Airbnb distribution data. We identified gaps from VisitBritain segment analysis.

Get fresh and reliable information about the market in the UK

Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.

buying property foreigner the UK

What property works best for Airbnb demand in the UK right now?

What bedroom count gets the most bookings in the UK as of 2026?

As of early 2026, two-bedroom properties get the most bookings in the UK, followed closely by one-bedroom flats in major city centers.

The booking breakdown shows two-bedrooms capturing roughly 35%, one-bedrooms at 30%, studios at 15%, and three-bedrooms or larger at 20%.

Two-bedrooms perform best because they capture the widest guest range: couples wanting space, small families, friend groups, and business travelers preferring separate living areas.

Sources and methodology: we analyzed performance using Inside Airbnb booking patterns. We tied findings to VisitBritain travel behavior. Estimates reflect HM Land Registry property data.

What property type performs best in the UK in 2026?

As of early 2026, the best-performing types are well-located flats and terraced houses in cities, and cottages in coastal and rural areas.

Occupancy rates show flats averaging 55% to 60% in cities, terraced houses at 50% to 58%, cottages at 45% to 65% depending on season, and detached houses at 40% to 55% with higher per-booking revenue but more seasonality.

Flats and terraces outperform in cities due to walkability and transit access, while cottages dominate leisure markets by delivering the cozy experience UK domestic travelers seek.

Sources and methodology: we anchored analysis on HM Land Registry housing categories. We applied patterns from VisitBritain preferences. Estimates validated against Inside Airbnb data.

What location traits boost bookings in the UK right now?

In early 2026, key traits boosting bookings are walkability to transit hubs, proximity to dining and entertainment, and for leisure properties, easy parking and access to headline attractions.

In cities, properties near major stations like King's Cross, Manchester Piccadilly, or Edinburgh Waverley see stronger year-round demand, while proximity to universities and hospitals provides steady bookings.

In coastal and rural markets, drive-to access, on-site parking, closeness to beaches or national parks, and excellent heating are essential since UK reviews punish cold properties.

For regulatory awareness, London location quality also depends on 90-night compliance, and in Scotland, whether your area requires planning permission alongside the mandatory licence.

Sources and methodology: we identified traits from ONS and VisitBritain patterns. We incorporated constraints from London City Hall and mygov.scot.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about the UK, we always rely on the strongest methodology we can and we don't throw out numbers at random.

We aim to be fully transparent, so below we've listed the authoritative sources we used and explained our methods.

Source Why it's authoritative How we used it
UK Government (DCMS) Official UK government guidance on the planned national registration scheme for England. We used it to describe England's STR registration direction. We framed compliance as checking local rules while monitoring national rollout.
London City Hall Mayor of London's official guidance on the 90-night rule. We used it to explain London's cap and its profitability impact. We highlighted how rules differ between UK nations and cities.
UK Legislation (Deregulation Act 2015) Official legislation explaining the legal basis behind London's short-let rules. We used it to anchor the 90-night concept in statute. We ensured explanations are grounded in law.
Royal Borough of Kensington & Chelsea London local authority document restating the 90-night rule plainly. We cross-checked calendar-year counting interpretation. We reinforced practical compliance guidance.
mygov.scot Official public-service site for Scotland's mandatory licensing regime. We stated that licences are required before bookings. We set expectations on costs and lead times.
Scottish Government (gov.scot) Scottish Government's central page for national STL rules. We confirmed Scotland-wide licence requirements. We separated licensing from planning permission.
mygov.scot (Control Areas) Official guidance on when planning permission is needed in Scotland. We explained control area risks and secondary letting treatment. We built restricted zones sections.
City of Edinburgh Council Local planning authority stating how Edinburgh applies STL rules. We provided a concrete UK control-area example. We showed how residency affects planning outcomes.
Welsh Government Welsh Government outlining visitor accommodation licensing direction. We explained Wales is moving toward licensing. We advised verifying latest commencement dates.
Bank of England Central bank's official policy rate decision record. We set the financing backdrop for STR profitability. We justified mortgage-cost range assumptions.
Ofgem UK energy regulator providing price cap data. We grounded utility-cost assumptions. We kept expense estimates realistic.
ONS (Rent & Prices) National statistics authority for housing prices and rents. We set broader housing market context. We explained STR opportunity costs.
HM Land Registry Official source for UK house price index by property type. We aligned property type discussion with UK housing stock. We avoided non-UK property categories.
GOV.UK (Business Rates) Official guidance on when STRs fall under business rates. We explained council tax versus business rates decisions. We built operating-expense checklists.
GOV.UK (Business Rates Changes) Government announcement on rule changes and enforcement. We anchored availability and letting thresholds. We justified proactive rates planning.
GOV.UK (Fire Safety) Government guidance for fire safety compliance. We informed minimum safety line items. We justified safety expense inclusions.
HMRC (Rent-a-Room) HMRC guidance on tax-free allowances for letting rooms. We explained home-sharing tax advantages. We showed how optimal setups vary by property type.
VisitBritain National tourism agency providing official travel trend data. We anchored seasonality patterns and demand signals. We validated property performance analysis.
ONS (Travel Trends) National statistics authority's comprehensive UK travel analysis. We understood tourism seasonality and behavior. We grounded occupancy and revenue estimates.
Inside Airbnb Independent project publishing transparent STR listing data. We validated listing counts and saturation levels. We cross-checked pricing and occupancy estimates.
UK Parliament (Hansard) Official record of parliamentary debates on STL regulation. We triangulated policy motivations and regulatory direction. We used it as context, not sole source.
infographics map property prices the UK

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the UK. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.