What Are The Best Places For UK AirBnB Investment?

If you’re considering venturing into the lucrative world of short-term rentals, the first question you need to ask is where are the best places for UK AirBnB investment. We’ve pinpointed four vibrant cities as some of the best areas for short-term buy-to-let investment. Each of these hubs offers unique opportunities for savvy investors seeking to capitalise on the ever-growing demand for short-term accommodation in the UK. With an abundance of amenities, great capital growth and swelling demand, these four cities are fantastic options for investors. Whether you’re a seasoned investor or a newcomer to the game, get ready to discover the potential that awaits in these dynamic locales.

Most lists suggesting investment locations start with Birmingham, and with good reason. The second city offers investors everything they could want – reasonable property prices, exceptional capital growth of almost 20% over the past decade, and strong demand for both short and long-term lets. What’s more, there is an abundance of reasons why people would look to visit Birmingham and book a short-term stay: from the famous Bullring to the Hippodrome, shopping for investment pieces in the Jewellery Quarter to relaxing in swanky Digbeth. In short, Birmingham offers visitors many reasons to visit, and even more reasons for buy-to-let investors to consider purchasing units in this city.

Short term investment properties in the second city generate an average annual revenue of £19,386 with a typical nightly stay costing £88. The occupancy rate of these property sits an an average of 59%.

As of April 2024, there are 3,231 short-term let properties available to let, with many of these being located on the outskirts of the city centre in areas such as Edgbaston and Digbeth. However, regions such as Selly Oak, the Jewellery Quarter and the city centre itself also contain a high number of short-term lets. Interestingly, properties in the city centre and Jewellery Quarter command a premium nightly cost of over £100, whereas areas slightly west of the centre such as Edgbaston, Harborne and Selly Oak are less expensive, averaging at a nightly cost of between £56 and £65. 26% of listings in Birmingham contain just one bedroom, signifying a potential gap in the market for larger short-term lets.

If you are searching for the best places for AirBnB investment, Manchester ought to be on your radar. This city is receiving huge swathes of investment, fuelling regeneration that is generating employment opportunities and drawing in visitors from not just the rest of the UK, but the world. In fact, Manchester attracts 1.15 million international visitors every year, with only London and Edinburgh being more popular. Better yet, Manchester is experiencing exceptional capital growth, with JLL suggesting that Manchester will see 19.3% property price growth by 2027. Airbtics also predict that the Manchester short-term buy-to-let market will continue to thrive, suggesting that investors could achieve over £185,000 in revenue over ten years from just one short-term let property. So, as an asset, Manchester property is a fantastic choice.

Manchester properties generate an average revenue of £22,654 annually and charge an average nightly rate of £95. This is based on an average occupancy rate of 64%.

At the time of writing, there are 2,930 active listings in the Greater Manchester area, with the most popular areas being just north of the city core in the Green Quarter, close to the Etihad Stadium to the east of the city core, and within the centre of Manchester itself. In each of these areas, landlords ask for a daily rate of over £100 – more than average – as renters will have improved access to city centre amenities for business and leisure.

The majority of short-term rental units in Manchester are appropriate for two tenants, with over 1000 listings being for a capacity of two people. There therefore seems to be a more significant gap in the market for larger homes that can be rented to larger groups such as families and larger parties travelling to the city for concerts, shopping and socialising.

Bradford is one of the best up-and-coming cities in the UK and its status as 2025 City Of Culture means that an abundance of visitors will undoubtedly be flocking to this northern city in the years to come. These people will need a place to stay, hence why we anticipate that the short-term lettings market will thrive in this region in the next few years. What’s more, with just 844 live short-term lettings listings on the market in Bradford, this market is far from saturated, which bodes well for investors.

Bradford is already performing exceptionally well when it comes to short-term lettings performance, with the average let generating a revenue of £18,728 per year. Although this is less than Birmingham and Manchester, it is important to note that property in Bradford is cheaper than in the aforementioned cities, which makes this revenue rather impressive. What’s more, with an average property price of £168,444 (January 2024), Bradford is a far more affordable market to enter for budding buy-to-let investors who still wish to reap the benefits of a thriving English city.

If you wish to purchase a short-term let in Bradford, expect to achieve 54% occupancy and to charge an average nightly rate of £88. The most popular areas in Bradford for AirBnb, VRBO and other short-term lets are the city core, Holme Top and Lidget Green, as all of these areas sit within close proximity to Bradford’s key amenities such as The Broadway, Centenary Square and the National Science and Media Museum which many short-term renters may want access to.

Last but certainly not least is Leeds, the UK’s fastest growing city which is home to 812,000 people. The latest statistics show that Leeds welcomes over 30 million visitors per year, which contributes £1.89 to the city’s economy. Visitors come to this Northern Powerhouse city for multiple reasons – to visit relatives at one of the city’s multiple universities, attend events at the First Direct Arena or Leeds Grand Theatre, or indulge in shopping at Victoria or Trinity shopping centres. With so many reasons for short-term visits to Leeds, it’s no surprise that the AirBnB market is thriving.

Better yet, investors in Leeds can enter the market at a relatively low cost, with the average property costing £248,931 – this is £33,000 less than the national average property price which sits at £281,913 according to Land Registry, making Leeds a more accessible market to prospective investors.

Looking for the best places for AirBnb investment in Leeds? The most popular locations for AirBnB lets in Leeds are the city core, Leeds Docks and The Calls. Landlords can anticipate a 62% occupancy rate for short-term lets in the city, and will generate an average yearly revenue of £20,640 based on a nightly rate of £89.