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Airbnb and other short lets performing strongly for investors

A tracking study, conducted in partnership with the UK Short Term Accommodation Association, shows exactly how well Airbnb and other short let platforms are performing with the pandemic in retreat.

The study measures the three main accommodation sectors simultaneously comparing how London’s short term rentals, hotels and serviced apartments have performed against each other.

For occupancy, short term rentals were considerably ahead of the others averaging 62.7 per cent for June. Hotels stood at 40.6 per cent and serviced apartments were 39.7 per cent. 


For Revenue per Available Room (RevPAR) short term rentals were ahead again averaging £79.20 in June – a 59.5 per cent year-on-year increase - compared to hotels which averaged £40.40 and serviced apartments which averaged £57.80.

Short term rentals saw an increase in the average length of stay from 10.6 days in May to 11.0 days in June. There is no comparable data with hotels and serviced apartments for this metric.

Merilee Karr, chair of the STAA, says: “It’s great to see that some of the main business indicators for the short-term rentals sector are looking in much better shape now since the UK domestic tourism and hospitality markets opened up. 

“Whilst there has been a noticeable absence of international visitors to London, the news that fully vaccinated individuals from Europe and the US will be welcomed back to England from August 4, should help improve the picture for many operators and drive the recovery for the capital’s accommodation.

“It’s interesting to see that not only is occupancy and RevPAR looking good but the average length of stays has steadily increased since April. 

“Guests are taking fewer but longer trips away because short term rentals can offer them a true ‘home-from-home’ experience enabling people to combine work with time away. As the traditional UK holiday destinations fill up, people should turn to see what their cities can offer. Short term rentals enable guests to socially distance themselves from others and offer them the reassurances of high standards of cleanliness and safety. This should appeal to both leisure and business travellers.”

The study’s key findings:

Occupancy (12 months to end June 2021)

- Short term rentals stood at 62.7% for June 2021, which is a 35.7% year-on-year (y-o-y) uplift on June 2020. Month-on-month (m-o-m), there has been a minor drop of 1.4%.

- Hotel occupancy was 40.6% in June, up 61.8% y-o-y and 32.4% higher than May 2021

- Serviced apartments were 39.7% in June a y-o-y increase of 126.7% and 18.6% better than May 2020

Average daily rates (ADRs) (12 months to end June 2021)

- Short term rentals averaged £126.20 for June which was a rise of 17.5% y-o-y but a 5.3% decrease compared to May

- Hotels averaged £99.40 for June had a 31.6% y-o-y improvement and were up 14.6% on May

- Serviced apartments averaged £145.70 for June which was a 33.6% y-o-y decrease and a 6.6% increase compared to May


Revenue per Available Room (RevPAR) (12 months to end June 2021)

- Short term rentals averaged £79.20 in June and saw the highest growth with a 59.5% y-o-y increase. They were down 6.6% on May

- Hotels averaged £40.40 in June which was a 112.9% y-o-y increase for hotels and a 51.7% rise on May

- Serviced apartments averaged £57.80 saw a y-o-y increase of 50.5% and a monthly rise of 26.4%


Average length of stay

- The average length of stay for short term rentals rose from 10.6 days in May to 11.0 days in June. In June last year the average length of stay in a short term rental was only 9.4 days.

- For the 12 months to June 2020 the average length of stay was 6.9 compared to 11.3 days for the 12 months to June 2021.

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

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    Is this an advertisement, a load of nonsense data or simply a load of untruth. We know as LL’s what Airb&b has done and is doing, mostly digital academics set up Companies rent the property from LL’s let it out as short term let’s making double what they are giving LL’s without owing the property or having a mortgage, they are making a fortune at LL’s expense, this wouldn’t be happening if regulators hadn’t put LL’s in a position that they couldn’t cope with draconian rules. Strange no mention in article of 90 days rule.

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    Airbnb has been great for me. I have a portfolio of buy to lets and now 2 of them have become holiday lets. Airbnb is a great platform to use and they take 2 or 3%...what's not to like?"Also, holiday lets are more tax efficient. I'm making much more money than I would have made using these properties as residentials and I've no worries about getting rid of bad tenants. Will I be re-letting any of my properties as residential lets once a tenant leaves?.... Absolutely not!!! Short term holiday lets are the way forward for me. If I'd been treated as a legitimate business as a residential landlord and not been made to jump through countless hoops I would have happily carried on supplying rental properties. It seems the government want landfords to supply properties and be treated like something on the sole of their shoes..... No more for this landlord... As they say in the Dragons Den... "I'm out!"


    I have a very nice holiday home which I used to rent out as holiday lets from April to September and do a six month let for October to March.

    The SNP banned this fixed length tenancy option so banning a family from having a really nice home for the winter.

    However I have ended up better off with peak rent achieved for much of October and December/January school holidays and off peak rents over much of the remaining time. All refurbishment can be scheduled for November and February so not reducing availability in higher rent periods. It now counts as a furnished holiday let with better tax breaks, no council tax liability and no rogue tenant threat.

    Thanks SNP. Keep the PRS "reforms" coming as they have been a great help in increasing landlords' earnings!

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    There was a phone in on radio 2 about the rental market in Cornwall, they are all going over to Air B&B, who can blame them, much higher rents, classed as a business for tax and no problems evicting non paying rogue tenants, the government, councils and Shelter only have themselves to blame here .


    Totally agree and the situation has been made far worse in Scotland with the SNP's ridiculous anti tenant legislation in December 2017, which they now realise was flawed but their new plans will only make things worse.

    In Edinburgh, Saint Andrews etc. many properties were refurbished every June and let to tourists until September and then to students over the winter and spring terms.
    However the students can't be held to a fixed length tenancy or compelled to give more than 28 days notice so many properties are no longer let other than for short term lets, reducing the availability of longer let accommodation and increasing the rents expected for the remaining available properties.

    However the idiots who support the SNP blame the landlord and not the goons they've voted in to gradually destroy Scotland.

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    Yes for every new AirB&B Shelter GR and Acorn only have themselves to blame. If they not happy best to ask Shelter with their £60mill every year to buy some houses and start letting them


    Jahan, Shelter cannot do that, it would mean all their staff would have to take a large pay cut.


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