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Top Most Profitable Airbnb Locations in the UK in 2025
Thinking about Airbnb investment in the UK? Find out the most profitable Airbnb locations the UK has to offer.
We’ll guide you through some of the best locations for Airbnb rentals in the UK. These locations are thriving with demand and are among the most lucrative options for Airbnb properties. We'll take a look at the most profitable Airbnb cities and regions that offer promising rental yields.
This list is based on market data and statistics from the UK’s short-term rental market, intended as a guide for Airbnb hosts who care about rental income and want to compare different markets across the country.
The UK Airbnb Market Overview
The UK remains a strong market for Airbnb, attracting international tourists, local tourists, and business travelers. Popular destinations like London and the South West region continue to drive strong demand that supports the local economy through tourism spending and flexible accommodation options.
Airbnb investors should be aware that the supply of vacation rentals is growing. This is the evidence that many see Airbnb as a solid business opportunity. Before investing, property owners should review the numbers and assess market saturation.
The highest rental supply is in London and the South West. However, it's also important to check competitors at the micro level, such as specific areas of a city or even neighborhoods, to identify locations with strong ROI potential.
Airbnb demand is consistently strong in the UK’s major cities, with London, Manchester, Edinburgh, and Liverpool serving as key hotspots. These urban centers attract a diverse range of guests, from business travelers and students to tourists exploring rich history.
The UK’s South coast remains a favorite getaway for visitors seeking a mix of coastal relaxation and lively city breaks. Areas like Brighton and Hove, Bournemouth, Dorset, and Cornwall appeal to families, couples, and festival goers, particularly during the warmer months.
The Scottish Highlands are one of the country’s most attractive rural Airbnb destinations, appealing to travelers looking for scenic beauty and peaceful escapes. Towns and villages such as Inverness and Fort William benefit from visitors drawn by outdoor activities, nature reserves, and dramatic landscapes.
In Northern Ireland, cities like Belfast and areas along the Causeway Coast enjoy steady demand from a mix of domestic and international guests.
On the Northwest Coast of the UK, the most in-demand Airbnb locations are generally tied to popular seaside towns, national parks, and cultural hubs: Blackpool, Southport, the Lake District, and the Liverpool area.
Market Growth and Regional Trends
As of May 2025, there were 481,563 short-term rental properties available across the UK, marking a 7% increase compared to the same period last year, according to a recent report by Lighthouse. This growth reflects consistent interest in the short-term rental market from Airbnb hosts and investors.
The Lighthouse report suggests that the highest concentration of listings can be found in:
- London – 87,000 properties
- South West England – 84,000 properties
In contrast, supply is lowest in:
- North East region – 15,000 properties
- East Midlands region – 22,000 properties
- West Midlands region – 23,000 properties
This regional imbalance is also reflected in booking activity. The most nights reserved in May 2025 were in:
- London – 1 million nights
- South West – 978,000 nights
- South East – 735,000 nights
The lowest nights reserved were in:
- North East – 178,000 nights
- East Midlands – 253,000 nights
- West Midlands – 281,000 nights
Occupancy and Pricing Trends
Despite rising supply, occupancy rates have declined a bit throughout most of 2024 and 2025. Although more listings are available, the number of reserved nights slightly dropped compared to the previous year, leading to lower occupancy rates. This reflects a challenge in balancing growth in supply with consistent demand. It's a note to Airbnb hosts to be careful about oversaturated areas.
However, pricing tells a different story. The Average Daily Rate (ADR) in May 2025 hit £309, up 20% from £258 in 2024. This increase suggests that while fewer properties may be fully booked, those that are command higher nightly rates, possibly due to location, brand, or seasonal factors.
Best Airbnb Locations to Invest in the UK
If you’re considering property investment in the UK, these major cities and locations drive demand for short-term rentals, based on Airbtics’s market data (Airbtics is an Airbnb market research tool).
We’ll evaluate key figures such as average monthly revenue, annual revenue, average daily rate, and average occupancy rate.
London
London stands out as the UK's largest and most active Airbnb market, with 1 million nights booked in 2024. It draws a broad spectrum of travelers—business travelers, international tourists, students, and locals. The capital city of England boasts four UNESCO World Heritage Sites. It's one of the global cities that attracts tourists year-round.
Short-term rentals in London achieve high occupancy rates, supported by consistently strong nightly prices. However, the city does impose some rules on Airbnb listings, and that’s something to be aware of. If hosts want to rent a property for more than 90 nights in a calendar year, they must obtain planning permission from the local council.
Most rentals in London are one- or two-bedroom apartments. The city consistently records some of the highest occupancy rates in the UK (74%, Airbtics).
Compared to Central London’s traditional tourist zones like Westminster or Southwark, outer-city neighborhoods like Notting Hill or Hampstead Village offer Airbnb hosts standout opportunities thanks to their strong identity and local culture.
London Figures
- ADR £136
- Average Revenue By Month £2,690
- Average Revenue By Year £34K
- Average Occupancy Rate 74%
Manchester
Manchester is a fantastic location for an Airbnb, as the market has grown in recent years. The city is home to several universities, including the University of Manchester and Manchester Metropolitan University, which help ensure a steady influx of students. In addition, multinational companies with UK headquarters in the city create stable demand from business travelers.
Major events in Manchester include the Manchester International Festival and the Manchester Christmas Markets. And let's not forget sports events and the massive fan base supporting the city’s Premier League football teams.
Like in most big cities, rental yield isn’t evenly distributed across all areas. The Northern Quarter, Ancoats, and Castlefield are some of the most popular neighborhoods. As for regulations, Manchester has been lenient until now, applying a 90-day limit, similar to London, for those hosts who don’t have a permit.
Manchester Figures
- ADR £105
- Average Revenue By Month £1,769
- Average Revenue By Year £21K
- Average Occupancy Rate 60%
Liverpool
Investment properties in Liverpool, known for the city center’s rich history and cultural heritage, are also seeing a rise in short-term rental demand. Liverpool is a top tourist destination, attracting millions of visitors annually, many of whom prefer short-term rentals.
The city has undergone significant regeneration, including major projects like the Liverpool Waters development and the revitalization of the Baltic Triangle. These initiatives are drawing in new businesses, further increasing demand for short-term accommodations.
As the home of several universities, Liverpool also benefits from a large student population and a packed event calendar, including the Liverpool International Music Festival.
Vacation rental hosts can expect particularly high yields in areas like Fairfield (27.2%), Walton (25.5%), Kensington (24.2%), Kirkdale (23.9%), Anfield (22.7%), and Toxteth (20.9%).
Liverpool Figures
ADR £98
Average Revenue By Month £1,577
Average Revenue By Year £18K
Average Occupancy Rate 54%
Brighton
Brighton is an attractive location for property investors, especially as a popular tourist destination. It’s just one hour by train from London, making it an excellent choice for weekend getaways. The city also has a thriving local economy, driven by tech startups and businesses relocating from London, earning it the nickname “Silicon Beach.”
Tourism supports more than 20.000 jobs in the city. Each year, about 11 million people take day trips to Brighton and Hove, and over 1.5 million stay overnight—mostly from other parts of the UK, such as London.
The short-term rental market in Brighton is strong, with solid ADR. Popular neighborhoods like Brighton City Centre, beachfront areas, and Hove consistently show high occupancy and income potential.
Brighton Figures
ADR £124
Average Revenue By Month £2,297
Average Revenue By Year £27K
Average Occupancy Rate 63%
Bristol
Bristol is a city in South West England, interesting to investors because of its high ROI potential and cheaper prices compared to London. Tourists often remark on Bristol’s authentic, laid-back vibe and street art, offering access to culture, cuisine, and activities.
It's a lively city famous for numerous year-round events like Bristol International Balloon Fiesta, Europe’s largest hot air balloon event in August. Or Bristol Harbour Festival, a massive summer celebration with arts, music, and maritime fun drawing over 250,000 visitors annually.
Bristol is an important business destination, among the top five for overnight trips and business visits in England. Bristol enjoys a relatively stable and high occupancy rate for short-term rentals. This makes it easier to maintain bookings and steady demand year-round.
Bristol Figures
ADR £108
Average Revenue By Month £2,221
Average Revenue By Year £26K
Average Occupancy Rate 69%
Bath
Bath is renowned as the only entire city in the UK designated a UNESCO World Heritage Site. It attracts millions of visitors each year with cultural attractions like the Roman Baths, contributing significantly to the regional tourism economy, which is valued at over £2 billion.
Airbnb properties in Bath report a high ADR of £151 and strong annual revenue potential, averaging around £35,000. As short-term rentals in the city center have grown rapidly, there are rising concerns about housing availability and increasing local rents.
So far, the city has introduced rules requiring short-term rental operators to register their properties and, in some cases, limiting their use.
Bath Figures
ADR £151
Average Revenue By Month £2,965
Average Revenue By Year £35K
Average Occupancy Rate 68%
Lewes
Lewes, a historic market town in East Sussex nestled within the South Downs National Park, offers a compelling mix of tourism-driven demand and strong short-term rental performance, with average annual revenue around £25K.
A steady stream of visitors is drawn to Lewes by its rich history, unique architecture, local events (like Bonfire Night and Glyndebourne), vibrant arts scene, and proximity to both the countryside and the coast.
Lewes features a mix of period homes, new developments, and rural retreats, appealing to a wide demographic, from young families to retirees.
Lewes Figures
ADR £112
Average Revenue By Month £2,083
Average Revenue By Year £25K
Average Occupancy Rate 64%
Glasgow
This Scottish city is an attractive destination thanks to its unique blend of music, culture, architecture, green spaces, and welcoming atmosphere. As a UNESCO City of Music, it boasts iconic venues like the Barrowland Ballroom and OVO Hydro, with live performances taking place year-round.
It’s an ideal location for visitors who enjoy the city’s culinary scene, traditional pubs, and shopping districts like Buchanan Street. Glasgow is also known for its friendly locals, excellent transport links, and its role as a gateway to the Scottish Highlands.
The city welcomes nearly 4 million overnight visitors each year, reflecting its growing popularity on the global stage. An average occupancy rate of 73% points to a strong short-term rental market.
Glasgow Figures
ADR £112
Average Revenue By Month £2,356
Average Revenue By Year £28K
Average Occupancy Rate 73%
Edinburgh
Edinburgh is a city with extremely high demand and strong revenue potential, averaging around £44,000 annually, along with impressive occupancy rates of over 80%, according to Airbtics data. Airbnb revenues in Edinburgh have grown by approximately 9% year over year.
In terms of seasonality, the average daily rate for Airbnb listings in the City of Edinburgh typically peaks in June and reaches its lowest point in January. The most popular neighborhoods for short-term rentals include Old Town, New Town, Leith, Stockbridge, West End, and Portobello.
The major challenge for short-term rental hosts in Edinburgh is the stricter regulation. Since 2022, the city has adopted a restrictive approach, requiring hosts to obtain a license from the City of Edinburgh Council to operate legally.
Edinburg Figures
ADR £154
Average Revenue By Month £3,675
Average Revenue By Year £44K
Average Occupancy Rate 82%
York
York in North Yorkshire boasts high ADR and revenue potential. Buying an Airbnb property in a city like York can be very profitable, as short-term rentals often generate twice the monthly income of long-term leases.
The heart of York, renowned for its medieval architecture, is an ideal destination for tourists seeking to explore iconic landmarks and historical sites. Another thriving market is The Bishy Road, a trendy area known for its independent shops and cafes.
York isn't a heavily regulated city, but Airbnb license requirements might still exist.
York Figures
ADR £144
Average Revenue By Month £2,623
Average Revenue By Year £31K
Average Occupancy Rate 66%
Norwich
Norwich is a city located 100 miles (160 km) northeast of London. Norwich is most famous in the UK for its rich history, medieval architecture, and cultural heritage. It still has more medieval churches than any other city in Northern Europe.
Some of the most popular investment areas include the City Centre, Riverside, Eaton, Norwich Lanes, and nearby suburbs such as Thorpe St Andrew and Hellesdon, each targeting different guest profiles.
As of 2025, Norwich is considered to have low regulation and licensing requirements (so far) for short-term rentals, creating a relatively easy entry for new hosts.
Norwich Figures
ADR £104
Average Revenue By Month £1,952
Average Revenue By Year £23K
Average Occupancy Rate 65%
Belfast
Belfast, the capital of Northern Ireland, is best known for its maritime history, shipbuilding heritage, political legacy, and cultural revival. It’s world-famous as the city where the Titanic was built, and the Titanic Belfast museum, located in the former shipyards, is now one of the UK’s top tourist attractions.
In addition to tourism, Belfast attracts a significant number of business travelers. Of all visitors taking an overnight business trip in Northern Ireland, over half, 52%, stay in Belfast.
Midweek and off-season demand, driven by conferences and events, helps support consistent occupancy for short-term rental hosts. The most profitable month in Belfast is May, according to Airbtics.
Belfast Figures
ADR £111
Average Revenue By Month £2,044
Average Revenue By Year £24K
Average Occupancy Rate 66%
Top Regions for Airbnb Investment in the UK
Let's take a look at the regions that are doing exceptionally well.
Shropshire and Herefordshire
Both counties are known for their beautiful countryside, quiet villages, and unspoiled landscapes. Whether it’s the Shropshire Hills or Herefordshire’s Wye Valley, both regions attract visitors looking for peace, nature, and outdoor experiences like hiking, cycling, and river walks.
If you're wondering where to invest in Shropshire for the best Airbnb returns, these three markets stand out for their income potential. Maer leads the pack with an impressive average annual revenue of £59,708, driven by a high daily rate of £454, despite a lower occupancy rate of 36%. Knockin follows closely, generating around £55,036 annually with an even higher ADR of £471 and a 32% occupancy rate. For those looking for more consistent bookings, Billingsley offers a 62% occupancy rate, with an average daily rate of £161 and annual revenue of £37,136.
Shropshire and Herefordshire Figures
ADR £116
Average Revenue By Month £2,104
Average Revenue By Year £25K
Average Occupancy Rate 60%
Pembrokeshire
Situated in South West Wales, Pembrokeshire pulls in over 6.3 million visitors a year — and it’s easy to see why. From stunning coastal views and ancient castles to lively festivals and local charm, there’s something for everyone. It’s also the UK’s only national park on the coast, which gives it serious global appeal and keeps visitors coming all year round.
Some of the top-performing markets are Tenby—with an average annual revenue of £42,175, a 63% occupancy rate, and an ADR of £180, and Fishguard, offering £30,218 in yearly income, 62% occupancy, and an ADR of £131.
Pembrokeshire Figures
ADR £126
Average Revenue By Month £2,253
Average Revenue By Year £27K
Average Occupancy Rate 61%
Gwynedd
Gwynedd, located in North Wales, offers a compelling case for Airbnb investment. Snowdonia National Park offers stunning landscapes and a range of hiking and climbing opportunities that attract outdoor lovers throughout the year. Also, Gwynedd has a large number of beaches, including very popular ones like Pwllheli.
The peak revenue month for STRs in Gwynedd is typically August, while November often presents the lowest earnings. Some of the highest revenue places are Pwllheli, where Airbnb hosts earn an average annual revenue of £29,245, with a 58% occupancy rate and an ADR of £135, while in Bangor, hosts bring in £28,808 annually, supported by a higher 69% occupancy rate and a slightly lower daily rate of £112.
Gwynedd Figures
ADR £133
Average Revenue By Month £2,371
Average Revenue By Year £28K
Average Occupancy Rate 63%
Lake District
The Lake District is a mountainous region and England’s largest national park, located in North West England. It’s famous for its dramatic landscapes, including England’s highest mountain and its deepest lake. As a result, the park attracts millions of visitors annually, and hosts have the potential to earn very high revenue.
Successful listings often take advantage of the Lake District’s scenic appeal, featuring traditional stone cottages, cosy cabins with wood-burning stoves, and added amenities such as hot tubs or exceptional views.
AirDNA data shows these figures about the Lake District:
Lake District Figures
ADR £209
Average Revenue By Month £3,567
Average Revenue By Year £31K
Average Occupancy Rate 64%
Peak District
The Peak District is Britain’s oldest national park. Located in the heart of the UK and just 90 minutes by train from London, it offers open roads and trails for hikers, cyclists, horse riders, and thrill seekers. Its proximity to major cities like Manchester, Sheffield, and Derby makes it perfect for weekend getaways and family holidays.
The park’s convenient location makes it an ideal escape from city life, offering a mix of outdoor activities, historic landmarks, and stunning countryside.
The Peak District is a smart choice for Airbnb investors. Properties with appealing features, such as scenic views, access to walking and cycling trails, and added amenities, can command premium nightly rates.
Peak District Figures
ADR £181
Average Revenue By Month £2975
Average Revenue By Year £26K
Average Occupancy Rate 60%
Cornwall
Cornwall is famous for its stunning coastline with beautiful beaches, charming fishing villages, and dramatic moorland landscapes like Bodmin Moor. Notable attractions include Tintagel Castle, linked to Arthurian legends and reputed to be King Arthur’s birthplace.
Among the most visited places, Lanteglos generates the highest Airbnb annual revenue at £51,561 with a 73% occupancy rate and £192 average daily rate, while St Austell Bay follows with £42,849 annual revenue, 66% occupancy rate, and £176 average daily rate, as Airbtcs data shows.
Cornwall Figures
ADR £128
Average Revenue By Month £2,261
Average Revenue By Year £27K
Average Occupancy Rate 60%
Suffolk
Suffolk (East of England) is especially popular with domestic travelers looking for peaceful, rural getaways, and increasingly with international visitors drawn to its history, art, and natural beauty. The Suffolk Coast is a major attraction, along with the region’s medieval heritage.
Eco-tourism is also thriving here. Nature-based stays like tiny cabins, glamping sites, and eco-cottages are increasingly in demand. Peak travel months run from May through September.
Some of the best Airbnb investment opportunities in Suffolk include Southwold, which brings in an impressive £108,010 in annual revenue with a 72% occupancy rate and an average daily rate of £403, and Orford, which shows strong potential with £50,590 in yearly revenue, a 64% occupancy rate, and an ADR of £208, according to Airbtics.
Suffolk Figures
ADR £138
Average Revenue By Month £2,432
Average Revenue By Year £29K
Average Occupancy Rate 62%
Takeaway for Airbnb Investors
We’ve explored some of the most profitable Airbnb locations the UK has to offer. To do this, we used market research tools like Airbtics and AirDNAs, along with local reports, to present relevant data.
Market research is essential for assessing the long-term growth potential of an Airbnb rental business. These tools support the research process by showing average occupancy rates, revenue estimates, top-performing properties and amenities, and even current property prices on the market.
Always look for demand signals such as annual visitor numbers, peak seasons, major events, and nearby attractions. Proximity to key locations and walkability also matter. Every neighborhood has its own unique character and appeal. It’s up to you to decipher the signals and figure out what drives profitability.
Study Airbnb Properties and Regulations
But don’t just rely on data. Study real listings in your target area: read reviews, analyze calendar availability, and note what amenities successful hosts highlight. This process will reveal gaps in the market and help you design a listing that stands out.
Also, stay up to date on local short-term rental regulations before you invest. This is especially important in urban areas like London or in places facing housing shortages.
Pro tip: Automate as much as you can. Once your Airbnb business is off the ground, set up systems that handle the day-to-day tasks for you—messaging, channel manager, cleaning coordination, so you can focus on growth, not only maintenance.
Use a property management software for Airbnb, such as iGMS. This tool handles guest communication, task assignments for your cleaning crew, review automation, financial reporting, and managing multiple booking channels for the same property.
It's perfect for hosts who want to list on multiple platforms like Airbnb, Vrbo, and Booking.com to attract more bookings.
