Save, make, understand money

Buy To Let

Revealed: The capital’s Airbnb hotspot

Written By:

The Airbnb market in London is booming, but one borough is towering over the rest.

Tower Hamlets, the East London borough that includes Docklands and Bow, is the most in-demand destination for Airbnb guests in the capital, according to new research by My Property Host.

The Airbnb property management service found that landlords in the borough who let out their home through Airbnb enjoy an average occupancy rate of 94%. It’s Tower Hamlets’ combination of good transport links and competitive nightly rates that has pushed it to the top of London’s first Airbnb league table.

Neighbouring Hackney, which includes trendy Stoke Newington and Shoreditch, is the second most popular borough with an average occupancy rate of 90%.

Third place is taken by Kensington and Chelsea which, though more expensive, is popular with tourists and boasts an occupancy rate of 87%.

Airbnb boom

The past year has seen an explosion in the number of visitors to London booking accommodation through Airbnb, and in the number of landlords letting out their homes this way.

The high occupancy rates recorded across the capital suggest demand and supply are evenly matched – making it essential that Airbnb hosts price their home correctly and earn good reviews to attract bookings.

My Property Host managing director Elena Lopez said: “Letting out your property through Airbnb is a quick and efficient way to make some short-term income, and the high occupancy rates across London show the strength of demand from visitors.

“Tower Hamlets and Hackney consistently have the highest occupancy rates, with hosts there able to let their properties nearly every night they want to.

“The popularity of these two boroughs is down to their combination of good transport links, trendy reputation and competitive nightly rates – factors which are prized by millennials, the people most likely to book an Airbnb stay.

“But as Airbnb’s popularity increases among families and business travellers, the map of Airbnb hotspots is likely to be redrawn. Larger homes in zones two and three will appeal more to families, and we expect properties in the City of London to do well as corporate travellers embrace Airbnb as an alternative to faceless hotels.”