How much can you earn from Airbnb in London in 2026?
Short answer: a well-managed two-bedroom Airbnb in central London is currently earning between £42,000 and £68,000 in gross annual revenue — roughly 1.8x to 2.4x what the same flat would let for on a 12-month AST.
But the spread between properties is huge. The same flat, one borough over, can earn 40% less if it's poorly listed, badly priced or unmanaged. This guide breaks down the 2026 numbers we're actually seeing across our managed London portfolio.
Average Airbnb earnings in London by bedroom count (2026)
Across our London-managed homes in Q1–Q2 2026, gross revenue per property looks like this on a 12-month run-rate:
• Studio / 1 bed in zone 1–2: £32,000–£48,000 per year, £150–£210 ADR (average daily rate), 76% occupancy.
• 2 bed in zone 1–2: £48,000–£72,000 per year, £210–£310 ADR, 74% occupancy.
• 3 bed in zone 1–3: £62,000–£95,000 per year, £290–£420 ADR, 70% occupancy.
• 1–2 bed in zone 3–4: £24,000–£42,000 per year, £110–£160 ADR, 68% occupancy.
These are gross numbers before Airbnb/OTA fees, cleaning, utilities, management and maintenance. Net to the owner typically lands at 60–72% of gross, depending on operating model.
Top-earning London boroughs for short lets
Westminster, Camden, Kensington & Chelsea and Southwark consistently top the table. Demand is year-round, ADRs are highest, and reviews compound quickly because guests are mostly international tourists with high tolerance for premium pricing.
Hackney, Islington and Tower Hamlets are the strongest mid-market boroughs — slightly lower ADRs but very high occupancy from a mix of business, leisure and design-led travellers.
Outer boroughs (Croydon, Ealing, Hounslow, Newham) work well for serviced accommodation aimed at contractors and project teams rather than tourists, with longer average stays (7–28 nights) and lower turnover costs.
The 90-day rule and how it affects your earnings
Greater London short lets are capped at 90 nights per calendar year for entire-home stays unless you hold planning permission for short-let use. Most landlords stay under the cap by mixing short stays with mid-term (30+ nights) corporate lets, which don't count toward the 90.
A common 2026 model: 90 nights of high-ADR short stays plus 6–8 months of mid-term company lets at £3,500–£6,500 per month. This typically beats a standard AST by 30–50% without breaching the cap.
What actually drives the earning gap between properties
Three things explain almost all of the variance: pricing strategy, listing quality and operational consistency. Dynamic pricing alone (vs flat nightly rates) typically lifts revenue by 12–22%. Professional photography and a fully optimised listing lift bookings by another 15–30%. Hotel-standard cleaning and sub-1-hour guest response times protect the 5-star reviews that drive everything downstream.
If you're self-managing and seeing under 60% occupancy or sub-£140 ADRs in a central borough, the property isn't the problem — the operation is.
Frequently asked
Is Airbnb still profitable in London in 2026?
Yes, for well-located, well-managed properties — typically 1.8x–2.4x AST income gross, 30–50% more net after costs. Poorly managed properties often underperform a long-let.
How much does Airbnb take in fees?
Hosts pay 3% of each booking subtotal under the standard split-fee model, or 14–16% under host-only fees. Booking.com is typically 15%. Direct bookings carry no platform fee.
What's the typical Airbnb occupancy in London?
70–78% across central and inner boroughs on a 12-month basis for professionally managed homes. Self-managed hosts typically sit at 50–62%.
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