New research from data company Propcision has revealed that across the capital, typical Airbnb rental rates for apartments are double those of longer-term rental rates.
However, the report also shows that despite the growth of Airbnb listings, there are still too few listed properties to damage the size of the rental market in the capital.
Propcision compared over 17,000 Airbnb actively managed listings for studios, one and two bedroom properties to gage more of an understanding about the impact of Airbnb in London.
In a statement, Propcision said: ‘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 the internet. Factor in the flexibility of having a day-to-day and weekly rental arrangement and it easy to rationalise the cost of an Airbnb rental being higher.’
‘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,’ it continued.
Airbnb listings achieve twice the rent of long-term lets in the capital
In London, the boroughs of Hackney, Kensington and Chelsea and Tower Hamlets generate the worst returns for long-term rentals, in comparison to the rest of the capital.
On the other hand, Westminster had the greatest number of actively-managed flat or house listings. However, the borough still performs under the London average, with Airbnb properties achieving just under twice the income of a long-term rental investment in the same region.