A new study has revealed that Bradford is the most profitable city in the UK to be an Airbnb host.
The research by international payment experts RationalFX on 27 major British cities analysed data from AirDNA and ONS to find which UK city offers the best combination of low property prices and high revenue from renting out via Airbnb.
It revealed that it would take just nine years to pay off the median house price in Bradford (£135,000) based on the average monthly revenue of £1,229 an Airbnb in the city generates. As a result the Yorkshire city tops the list, offering the best combination of low property prices and high revenue.
Swansea came in second, with an average of £1,100 in Airbnb revenue taking 10 years to pay off the city’s median property price, which is £143,500. In addition a high occupancy rate of 62% over the past 12 months makes the popular Welsh beach city highly cost effective for hosts.
During the pandemic there has been a sharp rise in the interest in staycations instead of overseas holidays. Research in 2020 found that 42.7% of people would rather enjoy a staycation compared to 24.7% of people voting to go abroad.
In addition property investors could also to take advantage of the government’s stamp duty exemption for the first £250,000 of a property, which is available until September. Out of the 27 cities in the analysis, 18 have a median house price below £250,000.
Stoke-On-Trent was the third most profitable city to be an Airbnb host. With a monthly revenue rate of £1,030, it would take 12 years to pay off the city’s median property price of £151,000.
Bradford has the highest occupancy rate per year (83%), followed by Brighton with 71%, and Bournemouth and Plymouth both on 70%.
Commenting on the study, a spokesperson for RationalFX said: “The demand for staycations has risen dramatically in the last year amid the pandemic, showing that the private holiday rental business is an area of interest for investment. With the easing of restrictions in the UK, it will be interesting to see how UK Airbnb bookings compete with the option of foreign holidays.”