Insight: The best UK cities to be an Airbnb host this August

Insight: The best UK cities to be an Airbnb host this August


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With the public still very much favouring staycations and avoiding the chaos of travelling abroad, Airbnb hosts in the UK are continuing to reap the benefits.

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But, in order to make a great profit whilst still ensuring your Airbnb listing is priced reasonably and fairly, insurtech company, Pikl Insurance reveals some statistics around locations and Airbnb listings.

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It delved into data from Airbnbs across 69 UK cities to find those with the highest average nightly price, largest predicted revenue per month (based on average nightly price and occupancy rate), and the biggest quarterly rental growth increase in that area.

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The study has uncovered the top 10 ideal places hosts should look to list an Airbnb property.

Which city ranks best for Airbnb hosts?

Dundee takes the top spot, with the average nightly price reigning supreme above any other UK city. Despite the predicted monthly revenue being lower than other cities, the quarterly rental growth of 16% and further growth data indicates the area’s increasing popularity, making Dundee a great place of investment for Airbnb hosts this year.

Perhaps unsurprisingly, the City of London comes in second place with the second highest average nightly price and a large quarterly growth rate of 21%, making it a consistently ideal place to have an Airbnb listing.

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Brighton & Hove comes next. The popular seaside destination is only growing and growing in regard to Airbnb profits, with the rental growth market here increasing by a whopping 27%.

Bath sits in 4th place with a predicted monthly revenue of £2,300 and counting, as well as a rental growth rate of 16% which is similar to that of Dundee.

Following this, Chichester holds 5th place with the highest quarterly growth rate out of all 69 UK cities, sitting at a huge 28%. This West Sussex city is definitely one to watch for Airbnb hosts considering expanding into new areas.

Edinburgh, Bristol, York, Cardiff and Portsmouth take the final 5 spots, all with the potential of earning between £1.7,000 and £2.3,000 in revenue per month, with ‘promising’ growth trends in these cities.

What should investors consider?

Prior to becoming an Airbnb host, experts at Pikl Insurance advise researching your location as this can give you a great indication of how much money you’re likely to make in your area.

“If you’re serious about starting an Airbnb host business, this can additionally be a great indication as to which areas of the UK will benefit you most in terms of occupancy, market growth rate, and overall profit,” they said.

“Location isn’t the only factor that can affect your income either. Factors such as length of stay, pricing and how you present your listing can also have a big impact on your short term rental income.”

Pikl adds that hidden costs can also eat into your profits such as not having the right insurance cover if someone damaged your property.

“Airbnb’s ‘Aircover’ shouldn’t be considered a replacement for having the right insurance and many hosts often need additional cover to give them more protection. A specific Airbnb insurance policy, such as the kind we provide at Pikl, is designed to fill these kinds of gaps in cover and give you the confidence knowing that you have more extensive protection in case something goes wrong.”

“This covers everything from theft and damage to legal cover when it comes to guests. It’s really important to consider your insurance cover before delving into Airbnb hosting to protect your property and ultimately your income too.”

Other factors to consider when buying a property are things such as whether the building is close to a flood risk area, subsidence or the type of security it has.

“Reducing your potential exposure to things that may cost you more money in the long run can help you avoid potential future costs when considering your purchase,” Pikl said. “If your property became flooded, for example, you could potentially lose rental income whilst this was being fixed. ”

Top 10 ideal places hosts should look to list an Airbnb property:

Ranking

City

Average Nightly Price

Predicted Revenue per month

Quarterly Rental Growth

1

Dundee

£279

£1900

16%

2

City of London

£263

£1900

21%

3

Brighton & Hove

£212

£2300

27%

4

Bath

£204

£2300

16%

5

Chichester

£202

£2000

28%

6

Edinburgh

£208

£2100

19%

7

Bristol

£174

£2300

16%

8

York

£179

£2200

16%

9

Cardiff

£207

£1700

17%

10

Portsmouth

£189

£1800

24%

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