Air travel has reduced in demand since before the pandemic by as much as 76%, a sign that staycations are still very much on the cards for Brits this year, thus making it an excellent time to be an Airbnb host in the UK.
This data recorded by the Bureau of Transportation Statistics signifies that the public is in favour of spending their holidays at home to avoid the chaos of travelling abroad as travel strikes continue throughout the UK.
Although this may dampen the moods of some who were dreaming of an overseas holiday, it’s great news for Airbnb hosts on the other hand, who can make the most of the increase in Brits opting for staycationing.
Before you get ahead of yourself and dust out that extra room to rent out, you’ll need to know how to make a good profit whilst ensuring your Airbnb listing is priced fairly and reasonably.
Pikl Insurance has examined some data from Airbnbs across 69 cities in the UK to find those with the highest average nightly price, largest predicted revenue per month based on average nightly price and occupancy rate, as well as the biggest quarterly rental growth increase in that area.
The experts at Pikl Insurance said: “We recommend always researching your location prior to becoming an Airbnb host as this can give you a great sign 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 also pointed out that 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.
They continued by saying: “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 that you may want 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. If your property became flooded, for example, you could potentially lose rental income whilst this was being fixed.”
The study showcased the top 10 ideal places hosts should look at 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% |
X marks the best Airbnb spot
Dundee has claimed the top spot, with the average nightly price reigning supreme above any other UK city. The quarterly rental growth of 16% and further growth data indicated the area’s increasing popularity despite the predicted monthly revenue being lower than other cities, as a result making Dundee a terrific place of interest for Airbnb hosts this year.
A little less surprisingly, the capital city comes in second place, with the second highest nightly price and a large quarterly growth rate of 21%, making London a consistently ideal place to have an Airbnb listing.
Making up the top three locations is Brighton and Hove. Well-known for being a popular seaside destination, it is only expanding regarding Airbnb profits, with the rental growth market here increasing by a whopping 27%.
Other top picks
Bath sits in fourth place with a predicted monthly revenue of £2,300 and counting, along with a rental growth rate of 16% which is similar to that of Dundee.
Following suit is Chichester in fifth place with the highest quarterly growth rate out of all 69 UK cities, sitting at a steadfast 28%. This West Sussex city is definitely one to watch for Airbnb hosts considering expanding into new areas.
Taking the final five spots in the top 10 are Edinburgh, Bristol, York, Cardiff, and Portsmouth – all with the potential of earning between £1,700 and £2,300 in revenue per month, which are promising growth trends in these cities.