All United Kingdom guides
London skyline
Airbnb Regulations  ·  United Kingdom

Airbnb in London: License, Income & Investment Guide 2026

By HostPal Editorial·Updated 314 days ago·Source: Inside Airbnb + Government registry

London Airbnb market: 28% occupancy (+12.7pts YoY), ~$163.83 ADR. Regulation: London allows short-term lets for up to 90 nights per calendar year per property without planning permission. Going abov

At a glance
Median occupancy
28%
+12.7 pts YoY
Median daily rate
$163.83
+2.4% YoY
Active listings
48,261
96,871 total
Revenue per available night
$28.45

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 12.7 points, while the median daily rate is up 2.4 percent.

London — occupancy over time 15% 1y ago 2024-09 28% Now 2025-09

When London Airbnbs perform best

Monthly occupancy data shows the seasonal rhythm of the London short-term rental market. Use this to plan dynamic pricing, target peak demand, and avoid lulls.

London — monthly occupancy 54% 53% 56% 59% 59% 64% 68% 67% 70% 62% 54% 56% JanFebMarAprMayJunJulAugSepOctNovDec 100% 0%

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
-2 pts vs national
National median: 30%
Daily rate vs national
+15.2% vs national
National median: $142.2

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 48,261 active operating listings, 70.4% are entire homes (vs private rooms), and 30.1% are operated by Airbnb Superhosts.

Bedroom mix among active listings
1 BR
2 BR
3 BR
Studio: 3.4%1 BR: 58.2%2 BR: 25%3 BR: 8.8%4+ BR: 4.7%

Top neighborhoods in London

The 39 neighborhoods we track range from established tourist hotspots to emerging investment zones. Here are the five strongest by revenue.

NeighborhoodListingsOccupancyRevPARYoY
City of London30037%$54.48+20.6 pts YoY
Westminster6,67237%$51.69+20.6 pts YoY
Kensington and Chelsea3,45228%$45.97+12.7 pts YoY
Camden3,70537%$41.4+17.3 pts YoY
Islington2,40437%$37.47+18.9 pts YoY

Frequently asked questions

Do I need a license to run an Airbnb in London?
London does not currently require a license to operate a short-term rental, though local regulations may still apply.
How many nights can I rent my Airbnb in London?
London caps short-term rentals at 90 nights per year for entire homes.
What is the average Airbnb occupancy in London?
Active Airbnb listings in London run at ~28% occupancy (up 12.7 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 $163.83, up 2.4% 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 48,261 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 +12.7 pts, daily rate +2.4%. Underlying data comes from the latest Inside Airbnb snapshot vs the closest archive ~12 months prior.

Keep exploring

Regulation deep-dive
Airbnb rules in London
Risk level: medium · 90-night cap
More in this country
All United Kingdom markets
Compare cities, find the best yield
Head-to-head
London vs Edinburgh
Side-by-side metrics + bottom line
Head-to-head
London vs Bristol
Side-by-side metrics + bottom line
Head-to-head
London vs Greater Manchester
Side-by-side metrics + bottom line
Going deeper?

Get the full London investment report

Property-level financials, stress tests, neighborhood-by-neighborhood breakdowns, and an AI verdict on whether to buy.

See the full report →
Already hosting here?

Your guests are texting right now

HostPal answers them on WhatsApp 24/7 — in 50+ languages, from your own house rules and guidebook. Emergencies get escalated to you; the WiFi password doesn't. Live in under 10 minutes, no PMS required.

Try HostPal free for 7 days →
Methodology. Market metrics are derived from Inside Airbnb's 2025-09 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=31,126, ADR n=40,917.