Airbnb renting gives you double the rental income of a long-term let
The rental rate for staying in an Airbnb home is double that of a long-term rate, providing a potentially lucrative alternative for landlords.
According to research by data company Propcision, renting out an Airbnb flat or house in Newham, Merton, Southwark or Camden offers the best return as compared to long-term renting.
The worst locations for opting for Airbnb over traditional renting include Hackney, Kensington and Chelsea and Tower Hamlets.
The research looked at over 17,000 Airbnb listings for studios and one and two bedroom homes.
Read more: The rise of Airbnb can't stop growing UK hotel turnover
Propcision said: "It is no surprise that short-term rental rates are twice as high as long-term rental rates. This does make sense as Airbnb landlords absorb costs for utilities, furnishings, and conveniences such as internet. Factor in the flexibility of having a day-to-day and weekly rental arrangement, and it is easy to rationalise the cost of an Airbnb rental being higher.
"The argument that Airbnb is impacting affordable housing appears tenuous. The number of listings in Greater London areas is exceptionally low and highly unlikely to impact long-term rental rates in the surrounding area."
Instead of acting as a threat to housing, Airbnb creates a problem for the hotel industry, Propocision said. As a result, the government may struggle to collect tax revenue from the travel industry.