If you’re considering venturing into the lucrative world of short-term rentals, the first question on your mind is undoubtedly: “where are the best places for Airbnb investment in the UK?”.
We’ve pinpointed four vibrant cities as prime locations for short-term buy-to-let property investment. Each of these dynamic hubs offers unique opportunities for savvy investors seeking to capitalise on the ever-growing demand for short-term accommodation across the UK. With strong capital growth, swelling visitor demand, and a wealth of amenities, these cities are fantastic options for your next AirBnB investment journey. Whether you’re a seasoned investor or a newcomer, get ready to discover the potential that awaits in these dynamic locales.
Birmingham
Most lists for property investment locations start with Birmingham, and for good reason. The UK’s second city offers investors everything they could want: reasonable property prices, exceptional capital growth, and strong demand for short-term lets. Birmingham’s property values have seen an impressive increase of almost 20% over the past decade, making it a robust market for AirBnB property investment.
Moreover, Birmingham’s appeal to visitors is undeniable. From the iconic Bullring shopping centre and the world-renowned Hippodrome Theatre to the unique shops of the Jewellery Quarter and the vibrant scene in Digbeth, there are countless reasons for people to book a short-term stay. In short, Birmingham offers visitors many reasons to visit, and even more reasons for buy-to-let investors to consider purchasing units for short-term rental investment.
Key Data for Birmingham AirBnB Investment:
Average Annual Revenue: £20,887
Typical Nightly Rate: £96
Average Occupancy Rate: 58%
Active Short-Term Let Listings (June 2025): 3,217
Manchester
If you are searching for a premier location for AirBnB investment, Manchester should be high on your radar. This city is a magnet for massive investment and regeneration projects, which are creating employment opportunities and attracting visitors from across the UK and the world. In fact, Manchester is the third most popular UK city for international visitors, drawing in 1.15 million international tourists annually, behind only London and Edinburgh.
Furthermore, the city is experiencing exceptional capital growth, with experts predicting a 21.7% property price growth by 2028. The Manchester short-term buy-to-let market is predicted to continue its strong performance, which makes a Manchester property a fantastic asset for your AirBnB portfolio.
Key Data for Manchester AirBnB Investment:
Average Annual Revenue: £23,474
Typical Nightly Rate: £104
Average Occupancy Rate: 60%
Active Short-Term Let Listings (June 2025): 2,754
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Bradford
Bradford is one of the UK’s most promising up-and-coming cities. Its status as the 2025 UK City of Culture will undoubtedly bring a huge influx of visitors to this northern city in the coming years. These visitors will need places to stay, and we anticipate the short-term lettings market will see a significant boost as a result. What’s more, the market is far from saturated, which is excellent news for new investors looking for an accessible entry point.
Bradford already demonstrates strong performance in the short-term lettings sector, with the average property generating a revenue of £19,642 per year. While this is less than Birmingham and Manchester, it is crucial to consider that property prices in Bradford are significantly lower. At an average property price of £177,000, Bradford is a much more affordable market to enter for budding buy-to-let investors who want to benefit from a thriving English city.
If you are looking to purchase a short-term let in Bradford, the most popular areas for short-term rentals include the city core, Holme Top, and Lidget Green. These regions offer close proximity to key attractions such as The Broadway, Centenary Square, and the National Science and Media Museum, which are popular with short-term renters.
Key Data for Bradford AirBnB Investment:
Average Annual Revenue: £19,642
Typical Nightly Rate: £96
Average Occupancy Rate: 55%
Active Short-Term Let Listings (June 2025): 858
Leeds
Last but certainly not least is Leeds, the UK’s fastest-growing city, with a population of 812,000. Leeds welcomes over 30 million visitors annually, contributing a massive £1.89 billion to the city’s economy. Visitors flock to this Northern Powerhouse for numerous reasons, including visiting one of the city’s multiple universities, attending events at the First Direct Arena or Leeds Grand Theatre, or enjoying the retail therapy at Victoria or Trinity shopping centres. With such a high volume of short-term visits, it’s no surprise that the Airbnb investment market is thriving.
Investors in Leeds can also enter the market at a relatively low cost. The average property costs £243,000, which is significantly cheaper than the national average. This makes Leeds a more accessible market for prospective investors seeking to build a profitable short-term rental business.
The most popular locations for AirBnB lets in Leeds are the city core, Leeds Docks, and The Calls. Landlords in these areas can expect a healthy occupancy rate and strong yearly revenue, solidifying Leeds’s position as one of the best places for AirBnB investment.
Key Data for Leeds AirBnB Investment:
Average Annual Revenue: £21,458
Typical Nightly Rate: £99
Average Occupancy Rate: 58%
Active Short-Term Let Listings (June 2025): 1,824