13 Airbnb Statistics in the UK You Must Know
Airbnb is a booming business in the United Kingdom, with London having the highest number of Airbnb listings among European cities. Guests in the UK generally prefer booking an Airbnb, which is £30.77 cheaper than a hotel room. Whether you’re an Airbnb host or a future guest looking into the UK Airbnb scene, you’ll appreciate these statistics that show how well the business is doing in the region.
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- In 2021, the UK recorded £225 billion in revenue from its Airbnb listings.
- London generated £281.17 million in revenue from its Airbnb listings in 2021, the highest gross revenue among cities in the UK with Airbnb.
- Brighton is one of the highest revenue-generating areas in London, with its £186 per night booking fee on Airbnb.
- There are 87,947 Airbnb listings in London as of September 2023.
- The average occupancy rate of an Airbnb listing in London is 11%, which is low compared to the UK’s average.
- The share of Airbnb listings in London is dominated by entire homes and apartments (59.4%) and private rooms (39.6%).
- Around 4 out of 10 hosts on Airbnb have multiple listings in London.
- 80% of Airbnb guests in the UK were domestic travellers in May 2020, when international travel was limited due to the COVID-19 pandemic.
How Many People Use Airbnb in the UK?
Around 7 million guests booked an Airbnb in some UK areas that lack hotel accommodations in 2022. According to Airbnb, here are the top cities with communities without hotel options and the number of Airbnb guests they served:
Read on and discover how these guests contributed to the growing market of the UK’s Airbnb industry.
Growth and Market Penetration of Airbnb in the UK
The first aspect to analyse is the Airbnb industry’s growth and market penetration, which you can interpret with the exciting statistics below.
The number of Airbnb listings in the UK has grown by 571% from 2014 to 2021.
(Airbnb)
This data reflects how much the Airbnb market has flourished in the country, seeing nearly a 600% increase in the number of properties listed on Airbnb in seven years.
The Airbnb market has also been helping the United Kingdom’s economy, from enabling its locals to accommodate guests to encouraging tourists to stay in lesser-known cities.
The vacation rental market in the UK, including Airbnb, is expected to decrease its user penetration rate to 24.3% in 2027.
(Statista)
The UK’s vacation rentals market, which includes Airbnb accommodations, took a hit in 2020 due to the COVID-19 pandemic limitations. Its user penetration rate went from 24.93% in 2019 to 12.42% in 2020. The effect of the COVID-19 pandemic started to wear off from the market in 2021, which allowed its user penetration rate to recover.
In 2023, the UK's user penetration rate of the vacation rental market was 23.38%. As the market eases from the post-pandemic spike, the penetration rate will only increase by 0.02% in 2024 and begin a slight decrease coming forward to 2027.
The number of users in the UK’s vacation rental segment will continuously increase up to 16.67 million users in 2027.
(Statista)
Just like in the UK’s user penetration rate of the vacation rentals market, the number of users in the industry also plummeted due to the COVID-19 limitations. From 16.65 million users in 2019, it decreased by half to 8.33 million users the following year.
Finally recovering in 2021, it rose to 16.52 million users in 2023. From then on, the number of users in this segment in the UK will increase by 1.21% until 2027. Here’s a visualisation of the correlation between the UK vacation rental markets in terms of user penetration rate and number of users.
Revenue Statistics for UK Airbnb
A host can generate high profits from their listed properties on Airbnb, especially if the location is a prime tourist destination, their services are top-notch and have positive reviews and testimonies.
In the UK, the return of international tourists helped the recovery of the Airbnb business. The number of bookings on Airbnb previously suffered a 40% plummet in 2020. It’s beginning its uptake, with over 37 million tourists entering the UK in 2023.
Thanks to tourism recovery in the UK, the revenue per user (ARPU) of the vacation rentals market in the region has been increasing. Forecasts show it will continue to rise until 2027.
Learn how this development affects the revenue generated by Airbnb listings in the UK by reading on.
UK’s Airbnb gross revenue almost doubled from £1.31 billion ($1.66 billion) in 2020 to £2.25 billion ($2.85 billion) in 2021.
(Search Logistics)
The UK is the third country with the highest Airbnb gross revenue in 2020 and 2021, recording £1,316,362,499 ($1,668,555,315) and £2,254,737,606 ($2,857,992,703), respectively. This increase can be attributed to the ongoing return of the vacation rentals scene after the year-long drought brought on by the COVID-19 pandemic 2020.
With more tourists coming to the UK and locals feeling more comfortable going out of town, Airbnb could expect more guests, leading to more revenue.
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London makes up most of the UK’s Airbnb gross revenue at £281.17 million ($356.4 million).
(Search Logistics)
London is simply the most popular city in the UK for its iconic landmarks like the Buckingham Palace, among many. Its rich culture and history also attract visitors. Those who want to discover and learn about the latter tend to stay longer in their London Airbnb.
Note:
Airbnb introduced a 90-day rule in London in January 2017. This rule limits an entire listing’s short-term occupancy to only 90 days, either a straight 90-day rental or a cumulative 90 days in one calendar year.
Despite the 90-day regulation, London’s Airbnb industry thrives and has been leading the cities of Europe in terms of Airbnb gross revenue. In 2020, it generated £231.60 million ($293.56 million) in revenue, which increased to £281.17 million ($356.40 million) in 2021.
The average price of an Airbnb listing in London is £188 per night.
(Statista)
Despite an average Airbnb accommodation being £30 cheaper than a hotel room in the UK, it doesn’t compromise comfortability. Guests can even score a larger and more homey place to stay in for a much cheaper price.
In London, the average price of an Airbnb property is £188 per night, which guests flock to for the mentioned benefits, among many other reasons.
Brighton is one of the highest revenue-generating areas in the UK, with a daily rate of £186 ($235).
(Lettings Owl)
Brighton is the most profitable Airbnb area in London. Its daily rate is £186 and could generate around £27,000 monthly revenue.
Airbnb listings in Brighton are highly sought-after by domestic and international travellers due to their proximity to London. Brighton is also called ‘London by the Sea,’ attracting more tourists and native Brits from left and right.
Statistics on Airbnb Listings and Occupancy in the UK
In 2021, the UK had over 104,000 Airbnb listings in four of its major cities, which received most of the 19 million Airbnb bookings in the country in the same year.
One factor that affects the numbers above is the rise of remote work, which allows people to travel freely and longer. This setup lets Airbnb gather guests that prolong their stay, helping maintain an average Airbnb occupancy rate of 48% in the UK.
Read the statistics below for more details about Airbnb listings and occupancy in the UK.
As of September 2023, London has 87,947 listings on Airbnb.
(Statista)
London has the most Airbnb listings in the UK, and even in Europe, with 87,947 properties registered. This statistic reflects the previous data that shows London has one of the highest revenues in Airbnb listings across the UK.
Following London in the list is Edinburgh, which has a huge gap as it only has 8,044 properties, showing how more in-demand Airbnb is in London compared to other major cities in the country.
The average occupancy rate of an Airbnb property in London is approximately 11% per year.
(Airbnb)
Although London has the highest Airbnb listings of all the cities in the UK and Europe, the average property in the city has an occupancy rate of 11% in a year. That’s roughly 40 days of booking over 365 days.
Hillingdon has the highest occupancy rate in London at 17%, possibly due to its proximity to Heathrow Airport. However, this figure is still considered low, translating to only 62 days of annual occupancy.
Meanwhile, the lowest occupancy rate in London is Bexley at 7% or 25 days of occupancy in a year. This low occupancy rate in London can be attributed to the 90-day rule that limits the number of days a property can be rented out to guests.
Nearly 60% of the Airbnb listings in London are entire homes or apartments.
(Statista)
In London, 59.4% of Airbnb listings are entire homes or apartments, which are lucrative among guests seeking comfort while travelling.
With Airbnb, patrons can rent out whole houses and apartments for an inexpensive fee. Travellers consider this setup as convenient. For instance, most Airbnbs allow guests to cook in a homey kitchen, making them feel at home while being in a different place.
Another popular option among Airbnb properties in London is private rooms, which comprise 39.6% of the listings. Most of these rooms are less expensive than renting out houses, perfect for those on a budget but don’t want to compromise comfort.
The Demographics of Airbnb Hosts and Guests in the UK
Beyond the properties, hosts and guests are also important aspects of Airbnb. Guests look for the right host for their needs and likes, and vice versa.
The perfect pair of guests and hosts make a successful Airbnb booking. Understanding the prominent demographics between the two could help make that happen. Read on.
46% of Airbnb hosts in London have multiple listings (over two properties).
(Airbnb)
In London, 54% of hosts have a single listing on Airbnb (38,000). The remaining 46% of hosts have multiple properties listed on Airbnb. Moreover, 11,000 of the Airbnb listings in London are by hosts with over 10 properties registered on Airbnb.
The number of people registered as hosts on Airbnb shows that the short-term rental landscape is a popular way of earning extra income in the UK.
A typical Airbnb host in the UK could earn £6,000 monthly from renting out a property.
(Airbnb)
The cost of living in the UK has been severely increasing and is considered an ongoing crisis. In December 2023, 52% of Great Britain adults reported suffering the consequences of increased cost of living.
Airbnb has helped hosts earn a second living wage of £6,000, which is worth two months of the average salary in the country. This figure explains why more Airbnb hosts could spring in, creating more listings in the UK.
Eight out of 10 Airbnb guests in the UK were domestic travellers in May 2020.
(Statista)
The ratio of domestic and international guests in Airbnb in the UK is 8:2, respectively. This figure was recorded in May 2020, when COVID-19 mandates were stricter and international travel was limited. This trend was evident in the first half of 2020 when over 50% of domestic guests occupied Airbnb listings in the UK.
Wrap Up
Although the United Kingdom is generally a pricey destination, local and international guests tend to favour Airbnb properties as they are cheaper and more accommodating options.
After the industry has started to recover from the travel and accommodation limits imposed during COVID-19, the statistics dictate that the Airbnb landscape has entered a steady and stagnant state in the UK.
Most of all, based on expert predictions, Airbnb hosts in the UK could expect a thriving business for the years to come.
FAQs on Airbnb Statistics in the UK
Is Airbnb profitable in the UK?
Airbnb is highly profitable in the UK, especially in prime areas like London, which generates the most revenue.
What is a reasonable occupancy rate for Airbnb UK?
In general, a good occupancy rate in Airbnb is above 50%, and some outlier properties in the UK sporadically generate an occupancy rate over that threshold. However, on average, most Airbnb properties in the UK have a 48% occupancy rate.
What type of Airbnb makes the most money?
Entire home listings make the most money on Airbnb. In the UK, the majority of listings on Airbnb are entire homes or apartments, which generate the most income.
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