Increase in multi-listed landlords signals commercialisation for Airbnb in London

The number of landlords with more than 10 Airbnb accommodations listed in London has risen by 8.4% year-on-year, according to recent findings from Colliers International and HotelSchool The Hague.

The analysis looked at the growth of Airbnb in major cities across Europe and found a significant increase in the supply of Airbnb accommodation units across London in 2017.

Some 45% of units in the capital were provided by multi-listers (those with three or more properties) in the same year, while the percentage of landlords with more than 10 properties listed in London rose to 23% – an increase of 8.4% since the previous year.

“This rapid growth in multi-listed landlords demonstrates the changing profile of Airbnb from what was originally a platform for individuals to let out their own homes, to a profitable commercial venture whereby people are buying residential properties specifically for use as Airbnb accommodation,” Colin Hall, head of London Hotels for Colliers International, commented.

He said that regulation is needed now more than ever to manage this growing platform to ensure a “fair playing field” for hoteliers and landlords alike.

Last year, London also experienced a 45% increase in bookings, amounting to almost 6.7 million overnight stays. This is comparable to an increase of 4.6% in hotel stays (91 million).

Central London & West End, Southern Fringe and the Northern Fringe were the neighbourhoods that took the highest percentage of business in the London market, collectively totalling 61% of total bookings.

Marc Finney, head of hotels & resorts consulting, added: “Interestingly, Central London & West End accounted for almost 32% of total bookings, with an average daily rate of €158 a night compared to an average of €130 across the wider London market.”

The Southern Fringe was the next most popular area with 17% of bookings. However, the Northern Fringe neighbourhood achieved a higher daily rate of €103 on average, besting the Southern Fringe’s €97.99 per night.

Head of EMEA research at Colliers International, Damian Harrington, concluded: “Airbnb continues to go from strength to strengths with its market share steadily increasing from 5.0% to 6.9% between 2016 and 2017.”

He said that although proportionally slightly down on 2016 levels, private rooms remain the most popular type of accommodation amongst Airbnb users in London, representing 41% of all bookings at an average of €63 per night.

Despite this, there was an increase in the proportion of bookings for entire homes, with the one-bedroom properties being the most popular choice in 2017.

“Similarly,” he went on, “although accounting for a smaller proportion of demand, 2017 saw a sharp rise in bookings for entire three and four-bedroom homes with average nightly rates considerably higher than the London average.”