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Airbnb Regulations  ·  United Kingdom

Airbnb in London: License, Income & Investment Guide 2026

By HostPal Editorial·Updated 36 days ago·Source: Inside Airbnb + Government registry

London Airbnb: 17.5% occupancy (+1.1 pts YoY), ~£173 median daily rate, 47,121 active listings. Regulation: London allows short-term lets for up to 90…

At a glance
Median occupancy
17.5%
+1.1 pts YoY
Median daily rate
£173
+34.3% YoY
Active listings
47,121
91,954 total
Revenue per available night
£31

Year-over-year performance

Compared to the closest snapshot from approximately 12 months ago, the London short-term rental market has shifted in measurable ways. Occupancy among active listings is up 1.1 points, while the median daily rate is up 34.3 percent.

London — occupancy over time 16% 1y ago 2025-09 18% Now 2026-09

When London Airbnbs perform best

Occupancy in London peaks in September at 68% and bottoms out in February at 50%, a 18-point swing across the year. Price the peak, defend the shoulder months with minimum-stay rules, and budget the trough as empty.

London — monthly occupancy 51% 50% 53% 57% 57% 60% 64% 64% 68% 61% 53% 54% JanFebMarAprMayJunJulAugSepOctNovDec 100% 0%
London Airbnb occupancy and median nightly rate by month
MonthOccupancyMedian nightly rate
January51%—
February50%—
March53%—
April57%—
May57%—
June60%—
July64%—
August64%—
September68%—
October61%—
November53%—
December54%—

Looking ahead, 55% of the next 30 nights are already booked across the market, 54% of the next 60 and 54% of the next 90 (as of 2026-10-18).

How London compares to United Kingdom

Benchmarked against 4 other United Kingdom markets we track, London's metrics tell a clear story.

Occupancy vs national
-0.3 pts vs national
National median: 17.8%
Daily rate vs national
+14.6% vs national
National median: £151

License & regulation

Risk: mediumLicense requiredRegistration required90-night annual cap

London allows short-term lets for up to 90 nights per calendar year per property without planning permission. Going above the cap requires planning permission, which is rarely granted in Greater London.

Worst case
If London introduces a stricter cap (40 nights), revenue could drop ~55%. Budget for long-term rental as a fallback.

Source: https://www.gov.uk/government/news/short-term-lets-registration-scheme-to-protect-communities-and-keep-tourism-strong

What kind of Airbnbs are in London?

Of the 47,121 active operating listings, 70.9% are entire homes (vs private rooms), and 31.9% are operated by Airbnb Superhosts.

Bedroom mix among active listings
1 BR
2 BR
3 BR
Studio: 3.8%1 BR: 58.9%2 BR: 23.8%3 BR: 8.8%4+ BR: 4.8%

Top neighborhoods in London

The 39 neighborhoods we track range from established tourist hotspots to emerging investment zones. Here are the 10 strongest by median annual revenue per listing, led by Westminster at £21,633 a year.

NeighborhoodListingsOccupancyAnnual revenueRevPARYoY
Westminster6,44822.7%£21,633£59+2.4 pts YoY
City of London36020.3%£17,710£49+2.8 pts YoY
Kensington and Chelsea3,52417.5%£17,607£48+1.1 pts YoY
Camden3,69922.7%£16,658£46+2.4 pts YoY
Islington2,33920.3%£15,108£41+0 pts YoY
Hammersmith and Fulham2,20917.5%£12,364£34+1.1 pts YoY
Southwark2,60820.3%£11,654£32+2.8 pts YoY
Lambeth2,38017.5%£11,466£31-2 pts YoY
Richmond upon Thames64015.2%£11,370£31+2.6 pts YoY
Tower Hamlets3,28717.5%£10,835£30+0 pts YoY

Frequently asked questions

What is the average Airbnb occupancy in London?
Active Airbnb listings in London run at ~17.5% occupancy (up 1.1 points year over year). Source: Inside Airbnb.
What is the median daily rate for an Airbnb in London?
The median Airbnb daily rate (ADR) in London is approximately £173, up 34.3% year over year. Based on listings with at least one review in the last 12 months.
How many active Airbnb listings are in London?
There are approximately 47,121 active short-term rental listings in London (listings with at least one booking in the last 12 months).
Is Airbnb income growing or shrinking in London?
Compared to a year ago, London short-term rental performance has shifted: occupancy +1.1 pts, daily rate +34.3%. Underlying data comes from the latest Inside Airbnb snapshot vs the closest archive ~12 months prior.

Keep exploring

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Airbnb rules in London
Risk level: medium · 90-night cap
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Methodology. Market metrics are derived from Inside Airbnb's 2026-09 snapshot, filtered to active listings (those with at least one booking in the last 12 months). Year-over-year deltas compare against the closest archived snapshot ~12 months prior. Sample sizes: occupancy n=47,121, ADR n=40,129.