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.
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Yes but you have to pay your own council tax & utilities and have all the additional cost related to laundry cleaning etc. Plus a much higher risk of damage to the property. As in most investments with higher risk comes the potential of higher rewards. For most the stability and lower risk on long terms tenancy is still the way to go!
France is limiting Airbnb type lets through national insurance payment and taxation limits, Barcelona does not allow it now, New York is standing up to this racket, when will the UK Chancellor realise that this is a totally biased and unfair way for people to make even more money in the S East than in the rest of England AND undercut the investments and health and safety requirements necessary in the hotel business, and increases homelessness by removing 17000 properties from the serious housing market! 17000 people and families in London are homeless because of Airbnb!
Airbnb may well command twice the long term rental rate however what are their average void periods? Twice the rent for half the occupancy with all the bills and all the wear and tear is a very different proposal altogether.
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