Homeowners in tourist destinations can make some extra cash letting out their properties over the festive season, and profits in the capital are higher than most households’ monthly wages.
The most profitable London boroughs for letting over the Christmas season have been revealed by London-based Airbnb management company Hostmaker. The data highlights a shift in attitudes to renting across generations.
Top of the survey is South Kensington. The popular smart area will see homeowners choosing to let their property over the hectic Christmas period celebrate with an eye watering monthly gross profit of £8,232.
Tim Hassell, managing director at prime lettings agency Draker in Sloane Street and Fulham said: “Short lets in South Kensington have been growing in popularity since the late 90s and are now relatively commonplace.
“Offering stunning classic London architecture, a wide array of the finest shops, bars and restaurants and located within walking distance of the stunning Hyde Park, South Ken offers everything for the perfect short stay in London.”
Change in the way we view our home
In general, people increasingly view renting out their homes, particularly in London and major UK cities, as a means of generating extra income during busy rental periods, such as during seasonal holidays.
As generational attitudes towards letting properties and indeed the property market in general have shifted, more and more homeowners are using their properties to yield additional income by letting them out over this busy rental period when homes may otherwise be left sitting empty.
Prime Central London shows big profit
Unsurprisingly, in line with London’s most expensive postcodes for purchasing a property, the same areas including Belgravia, Bayswater, Marylebone, Chelsea and Kensington are the top five where there’s the most opportunity to make the most substantial profit. Covent Garden also ranks highly, proving itself a desirable rental destination grossing an average profit of £5,590 for landlords.
Tim Hassell added: “It’s not just South Kensington. Many property owners in other prime central West London areas such as Chelsea, Knightsbridge and Notting Hill Gate have discovered that short letting their properties can make a terrific return on their investment, with some tenants paying double the long-term rental price for their stay. To achieve this, work really needs to be put into the furnishing and presentation of these properties to create desirable home from home hotel alternative that renters demand.”
Move further south and east to London’s trendy Camberwell, popular with the ‘hipster’ crowd and offering a good choice of accommodation, it is not the most lucrative when it comes to rental income. Hostmaker’s research reveals that it yields the lowest income for homeowners with potential landlords likely to achieve a profit of around £1,398.00 per month.
Short-term rental returns are growing
Over the past 12 months, rental returns in London have broadly increased by around 10%, indicating that landlords and tenants are looking to benefit from the growth in willing short-term renters across the capital.
Hostmaker CEO Nakul Sharma said: “I am not at all surprised by the recent up soar in landlords looking to let their properties out during the festive period because it is such a busy time for the lettings market.
“At this time of year, London experiences a spike in the number of tourists visiting the city. The fact that landlords and tenants can both benefit from short-term letting options in these lucrative boroughs is great.”
“Short-term lets offer a home from home experience for spending Christmas abroad at a competitive rate, whilst generating additional income for landlords. We expect this same trend to rise year on year.”