The 10 Most Profitable Airbnb Locations: UK Guide for 2024

With high demand from students, tourists, and professionals, you may be considering investing in property to rent out on Airbnb.

As an investor, you should start your search from the most profitable Airbnb locations in the UK. Before buying an investment property, research key metrics like occupancy, rents, and growth potential in your target location.

At Baron & Cabot, we specialise in helping you find profitable investment properties in the right location. In this guide, we list out ten best places for Airbnb in the UK. Let’s dive in.

10 Best Places to Buy Airbnb Property in the UK

If you are looking to cash in on the booming short-term rentals market in the UK, consider buying properties in the following profitable Airbnb cities. The table below also outlines how much you can expect to earn based on data from previous Airbnb owners in that location.

1. Manchester

• Average Property Price: £296,578
• Airbnb Daily Rate: £110
• Airbnb Occupancy Rate: 46%
• Airbnb Monthly Revenue: £1,200

Offering a thriving music scene, world-famous football, and renowned art galleries, Manchester remains one of the best Airbnb locations in the UK. Investors can find studio flats to multi-bedroom houses suitable for short-term lets, especially near the city center and university areas where demand is high.

Nightlife and Culture

Manchester’s music scene brought Oasis to the world stage and continues to launch new bands. Venues like the Ritz, Albert Hall, and Manchester Arena attract major acts. For football fans, Old Trafford is a mecca. The Manchester Art Gallery and Whitworth Art Gallery also house important collections.

Transport and Infrastructure

Manchester Airport services over 190 destinations, aiding seamless transport for short-term guests. Major train stations connect to cities across the UK. The city also has an extensive tram and bus network. Infrastructure improvements, like the recently completed £560 million Northern Hub rail project, have helped boost connectivity and economic opportunity in Manchester.

Universities and Business

The University of Manchester and Manchester Metropolitan University bring close to 80,000 students (1,2) and opportunities for investment properties. Similarly, tech companies like Amazon, Google, and IBM have a presence in the city, contributing to a strong, diverse business environment.

Short-term rentals and serviced apartments in Manchester offer solid returns for savvy investors. With its vibrant culture, entertainment, nightlife and business opportunities, Manchester continues to attract more visitors each year, fueling the city’s short-term rental market. For investors seeking the most profitable Airbnb cities in the UK, Manchester should be at the top of the list.

Tip: If you’re buying an Airbnb property in addition to your main residence, check out our guide discussing stamp duty on second homes to understand the tax implications.

2. Liverpool

• Average Property Price: £213,587
• Airbnb Daily Rate: £150.4
• Airbnb Occupancy Rate: 47%
• Airbnb Monthly Revenue: £1,606

The Liverpool property market presents promising opportunities for savvy investors seeking a profitable Airbnb investment in the UK. According to our research at Baron & Cabot, Liverpool has over 1,598 properties listed on Airbnb, with an average daily rate of about £150 and an occupancy rate of almost 50%.

Affordable Properties with Strong Rental Yields

The average property price in Liverpool is £213,587, which is lower than the national average. As an investor, you can find reasonably priced properties suitable for Airbnb rentals and achieve rental yields of about 6.1% per annum. For example, rental properties in Liverpool’s city centre can cost around £250,000 and generate over £15,250 in rental income per year. Shortletiing on Airbnb can generate even higher amounts depending on the location within Liverpool.

Growing Tourism Supporting Demand

Liverpool’s tourism industry has grown substantially over the past decade, driven by attractions like the Royal Albert Dock, Beatles Story Museum, Anfield Stadium, and M&S Bank Arena. The city hosted over 31.5 million visitors in 2023, demonstrating the city’s enduring popularity and potential to support Airbnb demand.

Convenient Transport Links

Liverpool is well connected by rail, air, and road. Liverpool John Lennon Airport services domestic and short-haul European routes, while Lime Street railway station provides direct services to major UK cities. The M62 motorway also offers easy access from nearby Manchester, Leeds, and the wider Northwest region. These convenient transport links make Liverpool easily accessible to visitors and well-suited as an Airbnb investment location.

Affordable properties, strong tourism, and convenient transport links indicate Liverpool’s Airbnb market will continue to thrive. These factors suggest healthy demand and returns for Airbnb hosts over the long run. If you’re looking to purchase Airbnb property, Baron & Cabot has several investment properties in Liverpool; our team would be happy to discuss the options in more detail.

3. Birmingham

• Average Property Price: £232,000
• Airbnb Daily Rate: £123
• Airbnb Occupancy Rate: 58%
• Airbnb Monthly Revenue: £1,426

Birmingham is an up-and-coming destination for savvy property investors looking to capitalise on the UK’s booming short-term rental market. With an average property price of £232,000 and occupancy rates reaching 58%, Birmingham provides an excellent opportunity for investors interested in the best places for Airbnb in the UK.

Competitive Rental Rates

The average daily rate for an Airbnb rental in Birmingham is £123, making it an affordable destination for travellers. For investors, this means the potential for strong, sustained demand from budget-conscious visitors.

Central Location

Birmingham is located in the West Midlands region of England, with convenient access to major motorways and Birmingham Airport. The city centre itself is home to many attractions, including the Bullring & Grand Central, the Library of Birmingham, and the Birmingham Museum & Art Gallery. This central location and wealth of amenities help drive both tourism and business travel to the city.

Strong Growth Potential

According to a 2022 report on property prices, the West Midlands was among the fastest-growing regions in the UK, with prices increasing by 10.7%. This upward trend, combined with Birmingham’s emergence as a popular short-term and long-term rental destination, indicates healthy growth potential for investment properties.

With competitive rates, a prime central location, world-class museums, and strong potential for price growth and rental demand, Birmingham deserves consideration from investors looking to capitalise on the short-term rental market. By purchasing an investment property in this up-and-coming city, you can position yourself to achieve higher returns through Airbnb and other rental platforms.

Tip: If you’re exploring other property investment strategies, check out this read discussing the best places to buy a holiday home.

4. Ashford in Kent

• Average Property Price: £336,638
• Airbnb Daily Rate: £80.33
• Airbnb Occupancy Rate: 94%
• Airbnb Monthly Revenue: £3,393

Ashford, a town in the county of Kent in South East England, offers attractive opportunities to investors interested in the best Airbnb locations in the UK. With its picturesque countryside, Ashford is home to attractions like Godinton House & Gardens and The Hawking Center. These attractions are a top destination for short-term visitors, who are great drivers for holiday home investment.

Affordable Property and Strong Yields

The average property price in Ashford is around £336,638, lower than in major cities like London. For investors, this means more affordable entry points and a higher potential for capital appreciation.

Excellent Transport Links

Ashford has excellent transport connections to London and continental Europe. Ashford International Station provides high-speed rail services to London, as well as Eurostar services to Paris and Brussels. These strong transport links make the town an attractive destination for both business and leisure travellers, fueling demand for short-term rentals.

A Prosperous Local Economy

Ashford’s economy has diversified from its historical agricultural base. Key employers today include the William Harvey Hospital, Ashford Borough Council, and the Stour Centre. Tourism also contributes significantly to the local economy. Economic prosperity and job opportunities in Ashford drive population growth in the town and surrounding areas, offering a ready market for property investors and short-term rental hosts.

In summary, Ashford possesses many attributes that make it one of the most profitable cities for Airbnb property investment in the UK — beautiful scenery, historical attractions, affordable property, robust yields, excellent connectivity, and a prosperous local economy with diverse employment bases. Savvy investors seeking profitable opportunities in the short-term rental market would do well to consider Ashford.

5. Nottingham

• Average Property Price: £256,043
• Airbnb Daily Rate: £119
• Airbnb Occupancy Rate: 61%
• Airbnb Monthly Revenue: £1,627

Nottingham, located in the East Midlands region of England, offers savvy property investors significant opportunities for profitable short-term rentals. According to our research at Baron & Cabot, Nottingham has an average monthly revenue of £1,627, making it one of the most profitable Airbnb locations in the UK. In fact, tourism in the Nottinghamshire country generated a record £2 billion in revenue in 2022 alone.

Prime Location

Nottingham’s central location provides easy access to neighbouring cities like Leicester, Derby, and Lincoln, making it an ideal base for exploring the region. The city also attracted over 32 million visitors in 2022 to major events like the Robin Hood Festival, demonstrating its strong tourism appeal. As an investor, you can capitalise on this demand by purchasing properties in neighbourhoods popular with tourists and business travellers, such as Sherwood Forest Country Park.

Strong Buy-to-Let Potential

Beyond the short-term rental market, Nottingham exhibits solid fundamentals for buy-to-let investments. The city has a large student population, with several thousand students across its major universities, creating consistent demand for rental accommodations. Suburbs like Beeston, Mapperley Park, and West Bridgford—which offer good schools, transportation links, and amenities—are especially attractive for young professionals and families seeking longer-term rentals.

Robust Local Economy

Nottingham has a diverse, thriving economy based on healthcare, education, retail, tourism and professional services. Major employers include the University of Nottingham and Queen’s Medical Center Hospital. The overall economic stability and job opportunities in Nottingham help support the local property market, enabling investors to secure strong, long-term returns on their assets.

Nottingham’s vibrant tourism, expanding economy and large student population provide a solid foundation for investment in this up-and-coming location. By partnering with a reputable property investment expert like Baron & Cabot, investors can gain invaluable insight to identify the most profitable properties and leverage the highest returns.

6. Brighton & Hove

• Average Property Price: £513,118
• Airbnb Daily Rate: £162
• Airbnb Occupancy Rate: 90%
• Airbnb Monthly Revenue: £1,223 to £3,164

Brighton & Hove is a popular seaside resort on the south coast of England. The city attracts more than 11.17 million trips annually to its popular tourist destinations, contributing about £886 million to the local economy. This influx of tourism is largely due to its popular resort centre, which appeals to savvy investors looking for the best places to buy an Airbnb property in the UK.

Attractive Return for Short-Term Rentals

According to data from AirDNA, the average daily rate for a room in Brighton is £162, with an occupancy rate of up to 90% in summer, surpassing the national average. The most profitable areas are centrally located, within walking distance of attractions like the Royal Pavilion, Brighton Pier, and the city’s pebble beaches.

High Capital Appreciation for Long-Term Investment 

Properties in the most popular central neighbourhoods like Kemptown and North Laine command the highest premiums. An entire two-bedroom home could generate over £15,800 in annual revenue, with the potential for strong capital appreciation over the long run.

Brighton and Hove’s enduring popularity as a leisure destination and favourable fundamentals position it well for a strong ROI on short-term rentals. The area offers an appealing combination of high demand, premium pricing power, and diversification potential that is hard to beat. Looking forward, the city is poised to welcome visitors in droves and attain the status of one of the UK’s most vibrant tourist hubs.

7. Edinburgh

• Average Property Price: £335,958
• Airbnb Daily Rate: £181
• Airbnb Occupancy Rate: 51%
• Airbnb Monthly Revenue: £2,987

Edinburgh is renowned worldwide for its cultural attractions and vibrant arts scene. The Edinburgh Fringe Festival, the world’s largest arts festival, draws over 3 million visitors annually. The city’s historic architecture, including Edinburgh Castle and the Palace of Holyroodhouse, are popular landmarks. These cultural landmarks and events drive strong tourism and demand for short-term rentals — ideal for those interested in Airbnb investments in the UK.

Strong Fundamentals

Beyond its cultural appeal, Edinburgh has strong property market fundamentals. According to Statista, house prices in Edinburgh rose by 45% between 2015 and 2023. The average property price in Edinburgh is £335,958, with an average monthly return for an Airbnb property being £2,987, according to API Global. The city has a fast-growing population, low unemployment, and a shortage of housing, indicating the potential for further price and rent growth.

Excellent Locations for the Best ROI

For the best returns, investors should target properties in central, tourist-friendly locations. The Old Town, with its medieval streets and proximity to the castle, is ideal. Old and New Towns, a UNESCO World Heritage site known for its Georgian architecture, is also a premier location. Properties here can command premium nightly rates from tourists and business travellers alike.

In summary, Edinburgh’s thriving cultural scene, strong market fundamentals, and appealing central locations make it an excellent city for Airbnb property investment in the UK. By purchasing a well-located property and maximising occupancy rates during peak seasons, investors here can achieve higher-than-average returns in one of Britain’s most dynamic cities.

8. Bath

• Average Property Price: £392,000
• Airbnb Daily Rate: £152
• Airbnb Occupancy Rate: 67%
• Airbnb Monthly Revenue: £2,216

Bath is a historic city in Somerset, England, known for its Roman Baths and Georgian architecture. These historic pieces attract millions of visitors yearly, boosting the short-term rental market for investors interested in the best places for Airbnb in the UK.

A UNESCO World Heritage City

Bath is a UNESCO World Heritage Site, a status it attained in 1987. It’s also the only entire city to be named a world heritage site by UNESCO in the UK. These attractions have drawn an average of 6 million tourists to the city annually.

The Roman Baths, one of the city’s most prominent attractions, allows visitors a glimpse into the area’s ancient history. Another must-see is the Thermae Bath Spa, where you can relax in Britain’s only natural thermal spa. Moreover, the city’s stunning Georgian architecture provides an elegant backdrop for photos, appealing to visitors and helping your listing stand out. For savvy investors, Bath is worth considering for short-term rentals.

High Returns on Short-Term Rentals 

For property owners, Bath’s popularity translates to high demand for short-term rentals year-round. During the summer, the city hosts various festivals and events, including the Bath Festival, Bath Fringe Festival, and Jane Austen Festival, drawing large crowds. With an abundance of attractions and an occupancy rate of 67%, Bath presents excellent opportunities for those interested in short-term rentals.

Overall, Bath should be a top consideration for investors seeking lucrative property investment strategies in the UK. Its popularity as a tourist centre coupled with the potential for significant gains on short-term rentals makes it an opportunity worth considering!

9. Leeds

• Average Property Price: £257,718
• Airbnb Daily Rate: £106
• Airbnb Occupancy Rate: 63%
• Airbnb Monthly Revenue: £1,526

Investors seeking the most profitable Airbnb locations in the UK should add Leeds to their list. The city currently offers some of the highest short-term rental yields, with an average daily Airbnb rate of £106 and a 63% occupancy rate.

Growing Property Values

The Leeds property market has experienced strong price growth in recent years — property prices in the West Yorkshire area rose by 33.37% between 2017 and 2022. This upward trajectory is projected to continue due to Leeds’ fast-growing economy and popularity. Investors can benefit from capital gains in the long run, in addition to lucrative short-term rental income.

We recommend focusing your search on new-build investment properties or those in need of light refurbishment. Aim for two- or three-bedroom properties located within 30 minutes of local attractions and transport hubs. By furnishing and marketing the property for short-term lets, investors can achieve significantly higher returns than traditional long-term rentals.

In summary, Leeds demonstrates exceptional potential for buy-to-let investments due to consistent demand from both students and professionals, the availability of houses at accessible price points, and the opportunity to maximise returns through Airbnb and other short-term letting sites. For those interested in hands-off property investment with consistent cash flow, Leeds deserves strong consideration.

10. London

• Average Property Price: £518,000
• Airbnb Daily Rate: £184
• Airbnb Occupancy Rate: 80%
• Airbnb Monthly Revenue: £2,615

London is undoubtedly one of the most popular Airbnb locations in the UK. According to recent data, London hosts over 30 million visitors annually. The majority reside in Airbnb, generating about £14.2 billion per year for the city council. The high demand and limited supply of short-term rentals in London mean occupancy rates of over 80% and nightly rates of £184+ are common.

Higher Demand in Top Locations

Within London, the boroughs of Camden, Kensington and Chelsea, and Westminster are particularly profitable. In these sought-after central locations, investors can expect higher returns due to the area’s popularity with tourists and business travellers. Properties in upscale neighbourhoods like Notting Hill and Marylebone will command premium nightly rates, especially if styled attractively for the short-term rental market.

With London’s status as a global city and top tourist destination, the city’s short-term rental market is poised for continued growth. Savvy investors who secure a foothold in this competitive market now will benefit as demand for authentic, high-quality London Airbnbs increases in the coming years. Choose a London property in a prime location with high demand, and you can build a profitable Airbnb business with the potential for both strong cash flow and significant capital gains.

Frequently Asked Questions

Where is the highest demand for Airbnb in the UK?

The highest demand for Airbnb in the UK is in London, the capital city known for its robust growth potential and strong rental demand. With a 9% rise in house prices over the last 5 years, London stands as the premier choice for Airbnb property investment.

How profitable is Airbnb in the UK?

Airbnb is profitable in the UK (England, Northern Ireland, Wales, and Scotland), with the typical Airbnb host earning over £6,000 annually. In fact, in 2022 summer, reports indicate that hosts made more than £4,500. Overall, UK Airbnb hosts generate a monthly revenue of £2,414 on average.

Is Airbnb a good investment in the UK?

Investing in an Airbnb in the UK, particularly in London, has always been a savvy move. With the city’s property market exhibiting historical resilience and long-term growth, Airbnb properties offer a dual benefit: immediate rental income and the prospect of property value appreciation over time.

Conclusion

As a savvy investor, you have access to some of the most profitable Airbnb locations in the UK. With attractive property prices and strong rental yields, cities like Liverpool, Birmingham, Nottingham, and others offer excellent opportunities. Do your research, run the numbers, and choose the market that aligns best with your investing goals. The potential rewards are immense for those willing to take the plunge into this fast-growing segment of the sharing economy. You can also reach out to Baron & Cabot for updated information on the best Airbnb locations in the UK. 

Disclaimer: Any information provided by Baron & Cabot does not constitute financial advice and is for educational purposes only.