Research by data company Propcision has revealed that across London typical Airbnb rental rates for apartments are double that of long-term rental rates.
But even after the growth of Airbnb listings, there are too few listed properties to significantly damage the size of the long-term rental market in the capital.
Propcision – which is one of the leading monitors of so-called portal juggling by agents – has now compared over 17,000 Airbnb “actively-managed” listings for studios, one and two bedroom homes to understand more about the potential impact of Airbnb in London.
“It is no surprise that short-term rental rates are twice as high as long-term rental rates. This does make sense as Airbnb landlords absorb costs for utilities, furnishings, and conveniences such as internet. Factor in the flexibility of having a day-to-day and weekly rental arrangement, and it is easy to rationalise the cost of an Airbnb rental being higher” says a Propcision statement.
“The argument that Airbnb is impacting affordable housing appears tenuous. The number of listings in Greater London areas is exceptionally low and highly unlikely to impact long-term rental rates in the surrounding area” Propcision continues.
Within London the boroughs of Hackney, Kensington and Chelsea, and Tower Hamlets generate the worst returns over long-term rentals compared to other boroughs in London.
Kensington and Chelsea is amongst the worst-performing listings on Airbnb achieving well-under the London average of twice that of a long-term rental.
Westminster had the highest number of “actively-managed” “entire flat/house” listings. Yet, Westminster performs slightly under the London average with Airbnb properties potentially achieving just under twice the income of a long-term rental in the same area.