Property investors looking for a big return on investment through Airbnb stays should look East, according to new research.
The most profitable boroughs have now been revealed by the Airbnb management company Hostmaker, which worked out where savvy hosts can get the biggest markup on their pads.
Newham tops the list, due to the high demand compared with relatively low average property price for the capital at £365,126. Airbnb occupancy in the borough has now risen to 55.5 per cent.
This means the area which is home to the Olympic Park, London City Airport and Westfield Stratford offers a return on investment of 6.8 per cent.
"This is an encouraging sign for those looking to invest in London property," said Nakul Sharma, Hostmaker's CEO and founder.
"Short term lets offer an opportunity to deliver higher returns through flexible rental solutions. These results are a positive announcement for potential investors and can help alleviate the stress of stamp duty on those looking to sell up and move into the capital."
East London reigned supreme in the research, as property prices and demand put Havering in second place with a return of 6.5 per cent. Greenwich and Tower Hamlets were also among the most profitable areas with return of 5.7 per cent. They were matched by Southwark and Hounslow.
The most profitable places to have an Airbnb property
|Borough||Return on Investment|
|Newham||6.8 per cent|
|Havering||6.5 per cent|
|Greenwich||5.7 per cent|
|Hounslow||5.7 per cent|
|Tower Hamlets||5.7 per cent|
|Southwark||5.7 per cent|
|Lambeth||5.5 per cent|
|Barking and Dagenham||5.1 per cent|
|Kingston upon Thames||5.0 per cent|
|Merton||4.9 per cent|
Sharma added: "As stamp duty continues to deter landlords, there is a strong appetite among homeowners for short term lets which provide respite for those looking to boost their revenue.
"This does not require any change in planning or usage of the property, unlike traditional buy-to-let properties which require buy-to-let mortgages, creating a major barrier to property investors."