London ranks high on demand: 67% citywide occupancy puts it in the top quartile of European capitals, and the £28,400 median annual revenue per active listing is the second-highest in our dataset after Paris. Premium boroughs (Westminster, Camden, Shoreditch fringe) clear £45-60K/yr.
The trade-off is the 90-night-per-calendar-year cap on entire-home short lets in Greater London, which materially constrains how much you can earn from a single property. The investors who win here either (a) buy in boroughs where 90 nights at high £/night still beats long-term-let yield, or (b) hold the property primarily for capital appreciation and treat short-let income as a subsidy.
Avoid central-zone leasehold flats unless you've confirmed in writing the building permits short lets — most modern blocks ban them outright. The strongest risk-adjusted picks right now sit in zones 2-3 with strong transport: Shoreditch, Hackney Central, Brixton, Peckham.