Airbnb is becoming an every popular option for landlords looking to rent out their properties. Year on year, the number of landlords with over ten accommodations listed in the London area has risen by 8.4%.
Global real estate advisor Colliers International has worked together with hospitality business school Hotelschool The Hague to research the growth of Airbnb in major cities across Europe. Results from this research have revealed that there was a significant increase in the supply of Airbnb accommodation units across London in 2017.
During last year, over 45% of listings in London were provided by those with three or more properties. The percentage of landlords who had more than ten properties listed had risen to 23%, which shows an 8.4% increase since the previous year.
Colin Hall, Head of London Hotels for Colliers International, said: “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.”
Marc Finney, Head of Hotels & Resorts Consulting, added: “Interestingly, Central London & 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.”
Damian Harrington, Head of EMEA Research, Colliers International concludes: “Airbnb continues to go from strength to strength with its market share steadily increasing from 5.0% 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. 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.”
Landlords, don’t forget that even when letting out your property through Airbnb, Landlord Insurance can be vital for protecting your investments. From cover against accidental and malicious damage, to theft by tenants, it can provide you peace of mind.