Best UK Cities for Airbnb Investment: Top 7 Short-Let Locations in 2026

Fairhurst Medina serviced apartment, Manchester

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Choosing the right location for your short-let property is one of the biggest factors in how much you’ll earn. Whether you’re a guest looking for your next Airbnb break or a landlord deciding where to invest, some UK cities consistently outperform others for short-term rentals.

We’ve pulled together our top picks based on occupancy rates, average nightly prices, and guest demand — all drawn from our experience managing properties across the UK.

1. Manchester

Manchester is one of the strongest Airbnb markets in the UK outside London. A thriving music and sports scene, major universities, and a growing business district mean demand stays high year-round. Areas like the Northern Quarter, Deansgate, and Ancoats attract weekend visitors, conference delegates, and relocating professionals alike.

Average nightly rates for a well-managed one-bed apartment sit between £85–£120, with occupancy regularly hitting 75–85%. Manchester also benefits from huge event-driven spikes — think football matches at Old Trafford and the Etihad, plus festivals and concerts at the AO Arena.

2. London

London remains the UK’s most visited city, and short-let demand is enormous. Guests are willing to pay premium rates, especially in central zones like Westminster, Shoreditch, and South Bank. A well-positioned one-bed in Zone 1–2 can command £120–£200+ per night.

The trade-off is higher property prices and stricter regulations — London has a 90-night annual limit on short-term lets in most boroughs. But for landlords who plan around these rules, the returns per night are hard to beat anywhere else in the country.

3. Liverpool

Liverpool has become a short-let hotspot thanks to its waterfront regeneration, cultural attractions, and vibrant nightlife. The city draws stag and hen parties, Beatles tourists, football fans, and cruise passengers year-round.

Property prices are significantly lower than Manchester or London, which means better yields for landlords. Average nightly rates for a one-bed sit around £70–£100, with occupancy rates of 70–80% in popular areas like the Baltic Triangle and Liverpool ONE vicinity.

4. Blackpool

Blackpool might surprise some people on this list, but it’s one of the UK’s most searched holiday destinations. The Illuminations season (September–November) drives massive demand, and summer months see strong bookings from families visiting the Pleasure Beach and Tower.

Nightly rates are lower than city-centre locations — typically £50–£80 — but property prices are among the cheapest in the UK, making it an excellent entry point for new short-let investors. Seaside properties with sea views or proximity to the promenade perform especially well.

5. Salford

Salford, and particularly the MediaCityUK area, has grown rapidly as a short-let market. Home to the BBC and ITV studios, it attracts media professionals, contractors, and visitors attending events at The Lowry theatre. Its proximity to Manchester city centre — just minutes on the tram — gives it the best of both worlds.

Salford Quays apartments typically achieve £75–£110 per night, and the area benefits from strong midweek corporate bookings alongside weekend leisure guests.

6. Edinburgh

Edinburgh is arguably the UK’s strongest seasonal short-let market. During the Edinburgh Festival Fringe in August, nightly rates can triple, with one-bed flats commanding £200+ per night. Even outside festival season, the city’s historic appeal, Hogmanay celebrations, and steady tourist footfall keep occupancy high.

Scotland has introduced short-term let licensing, so landlords need to ensure they’re compliant, but the earning potential — especially for well-located Old Town and New Town properties — remains exceptional.

7. Bath

Bath’s UNESCO World Heritage status and year-round tourism make it a consistent performer for Airbnb hosts. The city attracts cultural tourists, spa visitors, and couples looking for weekend getaways. Properties with period features or proximity to the Roman Baths and Royal Crescent command premium rates.

Average nightly rates for a quality one-bed range from £90–£140, and occupancy stays strong throughout the year thanks to Bath’s appeal as an all-season destination.

How to Choose the Right Location

When evaluating a location for short-let investment, consider these key factors:

Guest demand: Look at how many Airbnb listings already exist in the area and their occupancy rates. High existing supply with strong occupancy is a good sign. Transport links: Properties near train stations, airports, or tram stops consistently outperform. Local events: Cities with regular large-scale events (sports, music, conferences) create reliable demand spikes. Regulations: Check local council rules on short-term lets before committing. Some areas have licensing requirements or night limits. Property prices vs. rental income: The best returns often come from areas where property prices are moderate but nightly rates are strong — Liverpool and Blackpool are prime examples.

Let HostaHome Help You Get Started

Whether you already own a property in one of these locations or you’re looking to invest, HostaHome can help you maximise your returns. We manage short-let properties across Manchester, London, Liverpool, Blackpool, and Salford — handling everything from listing optimisation and dynamic pricing to guest communications and cleaning.

Get a free property valuation today and find out how much your property could earn as a short-let. Contact HostaHome to get started.

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