Landlords in London are embracing Airbnb, new research shows
A new piece of research reveals that landlords are embracing the culture of Airbnb in London rather than letting out properties on more traditional longer term tenancies.
Indeed, landlords with more than 10 Airbnb listings in the UK’s capital have increased by 8.4% year according to latest research from global real estate advisor Colliers International.
Although the single largest proportion of units continued to be held by single property listers, in 2017 over 45% of units in London were provided by multi-listers, that is those with three or more properties and the percentage of landlords with more than 10 properties listed in London rose to 23%, an increase of 8.4% since the previous year.
‘This rapid growth in multi-listed landlords demonstrates the changing profile of Airbnb from what was originally a platform for individuals to let out their own homes, to a profitable commercial venture whereby people are buying residential properties specifically for use as Airbnb accommodation. Now more than ever, regulation is needed to manage this growing platform to ensure a fair playing field for hoteliers and landlords alike,’ said Colin Hall, head of London Hotels for Colliers International.
Airbnb saw an increase in bookings in London of 45% in 2017, amounting to almost 6.7 million overnight stays. This compares to a 4.6% increase in hotel stays to 91 million. Central London and the West End, the Southern Fringe and the Northern Fringe were the locations that took the highest percentage of business in the London market, collectively amounting to 61% of total bookings.
Central London and the West End accounted for almost 32% of total bookings, with an average daily rate of over €158 a night compared to an average of €130 across the wider London market.
In terms of volume, it was the Southern Fringe that was the next most popular area with 17% of bookings. However, when looking at ADR, the Northern Fringe neighbourhood was able to achieve a higher daily rate at €103 on average, compared to the Southern Fringe’s €97.99 per night.
Overall, Airbnb continues to go from strength to strength with its market share steadily increasing from 5% to 6.9% between 2016 and 2017.
‘Although proportionally slightly down on 2016 levels, private rooms remain the most popular type of accommodation amongst Airbnb users in London, representing 41% of all bookings at an average of €63 per night,’ said Damian Harrington, head of EMEA research at Colliers International.
‘There was, however, an increase in the proportion of bookings for entire homes with one bedroom properties being the most popular choice in 2017. Similarly, although accounting for a smaller proportion of demand, 2017 saw a sharp rise in bookings for entire three and four bedroom homes with average nightly rates considerably higher than the London average,’ he added.