Newham and Havering top list of most profitable locations for London Airbnb hosts

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Owners are looking to short-let solutions to boost their income (Source: Getty)

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.

Read more: Airbnb host service closes $1m funding round to expand further into Europe

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."

Read more: Airbnb just slashed the up front cost of booking a place to stay

 

Tags: Airbnb