Air-bnb Still a viable business model in London?

[Jayman21]

Hi
Can I ask if the Air-bnb is still a viable business model in London as of today December 2025?

1. What are the experiences of those who own and manage their airbnb either one or larger portfolio.
2. What is the expected revenue on a one bed flat in and about
- Liverpool Street station
- North Greenwich
- Canary Wharf

3. What areas have proven to be a success?
4. What has been the estimated monthly expense / maintenance on the same one bed flat in the list area above?

Thanks

 

[fisicx]

Yes it is viable. The answers to your questions depend on location, cost and your ability to run the business. I know two people who do this and both only make money because they do all the marketing, vetting, cleaning and maintenance themselves.

 

[Jayman21]

Thats good to learn. I assumed alot of the revenue goes into those areas mentioned i.e. marketing, vetting, cleaning and maintenance. It will be good to hear about areas proven to be successful.

 

[ethical PR]

Hi
Can I ask if the Air-bnb is still a viable business model in London as of today December 2025?

1. What are the experiences of those who own and manage their airbnb either one or larger portfolio.
2. What is the expected revenue on a one bed flat in and about
- Liverpool Street station
- North Greenwich
- Canary Wharf

3. What areas have proven to be a success?
4. What has been the estimated monthly expense / maintenance on the same one bed flat in the list area above?

Thanks

Hello

I have been doing STR for ten years.

I wouldn't necessarily agree with @Fiscix

1. London has 90 day restrictions and an increasingly oversaturated market so very hard for investors to make a profit.

2. You can check prices by looking at comparable properties in the areas of London you are looking at to see what they charge out.

3. Do your market research to see what areas are most likely to be popular. AirDNA is one site you can use.

4. Only you will know about your likely set up and ongoing cost are, by doing your research and putting a profit and loss budget . Lots of variables for example cleaner and cohost costs if you aren't managing things yourself .

 

[Jayman21]

Thanks. Insightful. Will do some more research

 

[Jayman21]

More contributions and insights would be greats. thanks

 

[Mark T Jones]

The (incorrectly named) staycation bubble has fully burst - but there remains a good market for short term rental if done correctly ( with serious over supply in some areas)

The people who will hurt most from the burst will be:

1. Those who just rented out rooms (or plonked pods on land) without thought or research and watched the bookings roll in.

2. Those who over borrowed.

In both cases they will initially drop prices and cut corners before moving on.

The ones who survive will have a clear identity, property suited to their specific market and a sensible pricing policy (maybe with appropriate debt)

If you are expecting nuggets or gems, you are asking for trouble - you need research and insights specific to your area, your target demographic and your specific purpose

 

[fisicx]

One of those I know doing ok owns their property. They live upstairs and rent out the ground floor flat. No mortgage and a good location close to road and rail links. They don’t rely on rental income so aren’t fussed if their occupancy rate is low.

The other person has a spare room with en-suite. Again, no real overheads and do very well in the summer with younger travellers.

@Jayman21 - do you already own the properties?

 

[ethical PR]

The (incorrectly named) staycation bubble has fully burst - but there remains a good market for short term rental if done correctly ( with serious over supply in some areas)

The people who will hurt most from the burst will be:

1. Those who just rented out rooms (or plonked pods on land) without thought or research and watched the bookings roll in.

2. Those who over borrowed.

In both cases they will initially drop prices and cut corners before moving on.

The ones who survive will have a clear identity, property suited to their specific market and a sensible pricing policy (maybe with appropriate debt)

If you are expecting nuggets or gems, you are asking for trouble - you need research and insights specific to your area, your target demographic and your specific purpose

Sorry having been in the STR market for ten years I can't agree Mark.

Those who are renting out rooms are most likely to have a sustainable business - they have lower overheads, provide an personalised service and paren't as affected by STR restrictions.

Those most likely to be affected by oversaturated markets (no signs of any STR bubble bursting) are those who are investors with multiple properties operating in area with STR restrictions.

And as you say those who don't do their market research before setting up and who don't design guest centric properties designed to appeal to their target market.

 

[Jayman21]

The (incorrectly named) staycation bubble has fully burst - but there remains a good market for short term rental if done correctly ( with serious over supply in some areas)

The people who will hurt most from the burst will be:

1. Those who just rented out rooms (or plonked pods on land) without thought or research and watched the bookings roll in.

2. Those who over borrowed.

In both cases they will initially drop prices and cut corners before moving on.

The ones who survive will have a clear identity, property suited to their specific market and a sensible pricing policy (maybe with appropriate debt)

If you are expecting nuggets or gems, you are asking for trouble - you need research and insights specific to your area, your target demographic and your specific purpose

I have at the same findings as well. There is over supply in some areas so care is needed. Thanks Mark

 

[Jayman21]

One of those I know doing ok owns their property. They live upstairs and rent out the ground floor flat. No mortgage and a good location close to road and rail links. They don’t rely on rental income so aren’t fussed if their occupancy rate is low.

The other person has a spare room with en-suite. Again, no real overheads and do very well in the summer with younger travellers.

@Jayman21 - do you already own the properties?

These people found a gold mine from their existing asset so I wouldn’t really spend much time researching these category from a commercial perspective. I don’t one my property but looking at different entry options.

 

[Jayman21]

Sorry having been in the STR market for ten years I can't agree Mark.

Those who are renting out rooms are most likely to have a sustainable business - they have lower overheads, provide an personalised service and paren't as affected by STR restrictions.

Those most likely to be affected by oversaturated markets (no signs of any STR bubble bursting) are those who are investors with multiple properties operating in area with STR restrictions.

And as you say those who don't do their market research before setting up and who don't design guest centric properties designed to appeal to their target market.

This is spot on. Thanks

 

[fisicx]

These people found a gold mine from their existing asset so I wouldn’t really spend much time researching these category from a commercial perspective. I don’t one my property but looking at different entry options.

If you don’t own or have very low repayments you will struggle. Everyone I know getting into any sort of property business has considerable seed capital.

As @ethical PR suggests, you need to look at getting your own property and renting out rooms.

 

[ethical PR]

These people found a gold mine from their existing asset so I wouldn’t really spend much time researching these category from a commercial perspective. I don’t one my property but looking at different entry options.

How are you funding the properties and your start up costs?

 

[Ido Cohen]

Not an expert - just a product guy.

If you're asking about renting out an entire 1-bed flat commercially in London, the first question isn’t demand, it’s permission. London currently applies a 90-night annual cap on short-letting an entire home unless you hold planning permission for change of use. Airbnb may surface the cap, but the responsibility spans every platform you list on, not just Airbnb. The model lives or dies on constraints first, economics second.


Revenue in London is simply the nightly rate multiplied by realistic occupancy, minus the real costs you don’t see until you’re running it: cleaning turnover, platform fees, utilities, service charge, ground rent where applicable, repairs, replacements, and void nights between guests. Liverpool Street and Canary Wharf are driven by business travel and events, and North Greenwich gets strong weekend spikes from the O2, but all three are saturated with supply, so you win by spec and operations, not postcode romance. Most new hosts under-budget on maintenance because the churn is invisible on spreadsheets until towels, appliances and linens start dying on a monthly cycle.


The only question worth answering first is whether you plan to run under the 90-night limit, or go down the permissions route and operate it as an actual short-let business. That single decision changes everything about how you should model revenue, expenses, and risk.

 

[Jayman21]

If you don’t own or have very low repayments you will struggle. Everyone I know getting into any sort of property business has considerable seed capital.

As @ethical PR suggests, you need to look at getting your own property and renting out rooms.

Your recommendations are good and ideal. But in the absence of owning your own property, you would have to use other strategies. seed capital becomes a better way to go but it comes with the pressure to deliver on-going revenue to satisfy investors.

 

[Jayman21]

How are you funding the properties and your start up costs?

seed capital.

 

[Jayman21]

Not an expert - just a product guy.

If you're asking about renting out an entire 1-bed flat commercially in London, the first question isn’t demand, it’s permission. London currently applies a 90-night annual cap on short-letting an entire home unless you hold planning permission for change of use. Airbnb may surface the cap, but the responsibility spans every platform you list on, not just Airbnb. The model lives or dies on constraints first, economics second.


Revenue in London is simply the nightly rate multiplied by realistic occupancy, minus the real costs you don’t see until you’re running it: cleaning turnover, platform fees, utilities, service charge, ground rent where applicable, repairs, replacements, and void nights between guests. Liverpool Street and Canary Wharf are driven by business travel and events, and North Greenwich gets strong weekend spikes from the O2, but all three are saturated with supply, so you win by spec and operations, not postcode romance. Most new hosts under-budget on maintenance because the churn is invisible on spreadsheets until towels, appliances and linens start dying on a monthly cycle.


The only question worth answering first is whether you plan to run under the 90-night limit, or go down the permissions route and operate it as an actual short-let business. That single decision changes everything about how you should model revenue, expenses, and risk.

Your analysis is spot on. You have to get past the 90 day restriction first before anything else. The post code plays a big part if you really want to ensure consistent revenue in this business model. If you own your own property and decide to let out rooms then you are free from those two hurdles i.e. the 90 day restrictions and post code advantage.

 

[fisicx]

Your recommendations are good and ideal. But in the absence of owning your own property, you would have to use other strategies. seed capital becomes a better way to go but it comes with the pressure to deliver on-going revenue to satisfy investors.

Or you use the money to invest in a less risky business. As @Ido Cohen posted above you are more likely to lose than win unless you are going to do everything yourself which means living nearby.

 

[Mark T Jones]

Your recommendations are good and ideal. But in the absence of owning your own property, you would have to use other strategies. seed capital becomes a better way to go but it comes with the pressure to deliver on-going revenue to satisfy investors.

Why is an investor going to invest in you, rather than buying property & employing a manager?

 

[Jayman21]

Why is an investor going to invest in you, rather than buying property & employing a manager?

Well. you just mentioned it yourself. "and employing a manager". You become that manager. Investors don't have the time. Simple. For investors, it's about getting the money to work and multiply correct? Thats what makes them investors.
Thanks for all your comments. Really appreciated, It has been very insightful and useful

 

[Mark T Jones]

Well. you just mentioned it yourself. "and employing a manager". You become that manager. Investors don't have the time. Simple. For investors, it's about getting the money to work and multiply correct? Thats what makes them investors.
Thanks for all your comments. Really appreciated, It has been very insightful and useful

You have missed the point.

Investors invest in people or businesses that will bring value to them - it's far cheaper and easier to employ a manager or outsource the work than to invest - so the question is what value are you bringing over and above being a manager?

 

[ThatDevAaron]

I like travellodge

 

[Jayman21]

You have missed the point.

Investors invest in people or businesses that will bring value to them - it's far cheaper and easier to employ a manager or outsource the work than to invest - so the question is what value are you bringing over and above being a manager?

I did not miss the point. I would rather say you were more interested in expressing yourself which is fair enough.

You can’t detach value from a product or service offering. Any one offering a service or product must associate it with value I.e. what value would the client / investor get from this? So it’s not an argument, that’s why I did not stress it. I was responding from the practical aspect of it.

If you don’t add value then its not a product or service offering.

No one in their stable state would invest where there is no value to them. So it’s a default criteria. But then the question is what is value to the investor? It can be anything from “the product or service helps be save time and generates a ROI”

Thanks for all your useful comments.

 

[ethical PR]

seed capital.

Why would anyone provide seed capital when you have no experience of the STR market, London has an oversaturated STR market and has 90 day restrictions which councils don't grant planning permission to exceed.

What does your business plan say around why this would be a good investment and what you bring to the table ? What are your predicted profit margins like?

 

[ethical PR]

Not an expert - just a product guy.

If you're asking about renting out an entire 1-bed flat commercially in London, the first question isn’t demand, it’s permission. London currently applies a 90-night annual cap on short-letting an entire home unless you hold planning permission for change of use. Airbnb may surface the cap, but the responsibility spans every platform you list on, not just Airbnb. The model lives or dies on constraints first, economics second.


Revenue in London is simply the nightly rate multiplied by realistic occupancy, minus the real costs you don’t see until you’re running it: cleaning turnover, platform fees, utilities, service charge, ground rent where applicable, repairs, replacements, and void nights between guests. Liverpool Street and Canary Wharf are driven by business travel and events, and North Greenwich gets strong weekend spikes from the O2, but all three are saturated with supply, so you win by spec and operations, not postcode romance. Most new hosts under-budget on maintenance because the churn is invisible on spreadsheets until towels, appliances and linens start dying on a monthly cycle.


The only question worth answering first is whether you plan to run under the 90-night limit, or go down the permissions route and operate it as an actual short-let business. That single decision changes everything about how you should model revenue, expenses, and risk.

I disagree demand is everything for an STR business - easy enough to do medium term let's outside of the 90 day limit.

I don't know of any hosts that have got permission beyond 90 days so it's not a question as the OP won't get permission.

 

[Jayman21]

You are all correct with your comments. When it comes to investing in STRs,

investor look at a number of things

• Your portfolio is aligned with local regulations I.e. 90 days restrictions etc
• Ease of transaction I.e no one likes Long winded agreements
• ROI (very important)
• Most are attracted by how ethical it is. I.e. if part of your proceeds supports a good cause

For Service user:

• Proximity to meetings, study, work and entertainment
• Most users who go for STRs love the idea of self catering, Privacy and flexibility
• Some times cheaper than the hotel

For the service provider

• Creating and growing a brand
• ROI and consistent cash flow. This becomes a part of your pension in the long term

But it all depends on how create and manage the business model, how you manage the cost involved as mentioned earlier.

 

[ethical PR]

You are all correct with your comments. When it comes to investing in STRs,

investor look at a number of things

• Your portfolio is aligned with local regulations I.e. 90 days restrictions etc
• Ease of transaction I.e no one likes Long winded agreements
• ROI (very important)
• Most are attracted by how ethical it is. I.e. if part of your proceeds supports a good cause

For Service user:

• Proximity to meetings, study, work and entertainment
• Most users who go for STRs love the idea of self catering, Privacy and flexibility
• Some times cheaper than the hotel

For the service provider

• Creating and growing a brand
• ROI and consistent cash flow. This becomes a part of your pension in the long term

But it all depends on how create and manage the business model, how you manage the cost involved as mentioned earlier.

Your problem is that you don't provide any value to investors as you have no experience in the STR market and aren't clearly able to articulate what skills, experience and assets you bring to an investment.

Why wouldn't an investor just work directly with an experienced STR manager who has the skills and experience they need rather than you who would just add costs and bring no value .