London’s short-let market is the biggest and most lucrative in the UK — but it also comes with unique challenges. The 90-night rule, high property costs, and intense competition mean that success in the London Airbnb market requires a smart strategy. So, is Airbnb still profitable in London in 2026? The short answer is yes — but with important caveats.
London’s 90-Night Rule: What It Means for Hosts
The most significant regulation affecting London Airbnb hosts is the 90-night rule. Under the Greater London Council (General Powers) Act, you can only let your entire property on a short-term basis for up to 90 nights per calendar year without obtaining planning permission. This applies to most London boroughs and is enforced through Airbnb’s own platform — once you hit 90 nights, your listing is automatically suspended for the rest of the year.
There are ways to work within or around this limit. If you let individual rooms rather than the entire property, the 90-night limit doesn’t apply. If you obtain planning permission for short-term let use, you can operate beyond 90 nights. Some landlords use the remaining 275 nights for medium-term lets (30+ day stays), which don’t count towards the 90-night limit. And professional management companies like HostaHome can help you maximise revenue within the 90-night window and then transition to longer stays.
How Much Can You Earn From Airbnb in London?
Despite the 90-night limit, London Airbnb properties command the highest nightly rates in the UK. A well-positioned, professionally managed one-bedroom apartment in central London can achieve £120–£200+ per night, with premium properties in zones 1–2 commanding even more during peak periods.
Even within 90 nights, that translates to gross income of £10,800–£18,000 from short-lets alone. Combined with medium-term lets for the remaining months, total annual income can significantly exceed what a standard long-term tenancy would generate.
The best-performing London Airbnb areas include Shoreditch and the East End (trendy appeal, excellent transport links), Westminster and South Bank (tourist hotspots, premium rates), Kensington and Chelsea (luxury market, high average nightly rates), Camden and Islington (cultural attractions, consistent demand), and Canary Wharf (strong corporate and contractor market).
The Hybrid Strategy: Short-Lets + Medium-Term Lets
The most profitable approach for London landlords is a hybrid strategy. Use your 90 short-let nights strategically during peak demand periods — summer tourist season (June–September), Christmas and New Year, major events and exhibitions, and bank holiday weekends.
For the rest of the year, switch to medium-term lets of 30 nights or more. These don’t count towards your 90-night limit, and London has strong demand from relocating professionals, project-based contractors, university visiting scholars, and insurance-displaced tenants needing temporary housing. Medium-term stays typically achieve lower nightly rates than short-lets but higher rates than standard AST tenancies.
Costs and Considerations for London Hosts
London’s higher property values mean higher mortgage costs, which need to be covered by rental income. Management fees, cleaning costs, and furnishing expenses are also typically higher in London than elsewhere in the UK. Council tax in London boroughs ranges from £1,200 to £2,000+ per year for a typical one-bedroom apartment.
That said, the premium nightly rates and year-round demand mean that well-managed London properties consistently deliver strong returns. The key is professional management that maximises both your 90 short-let nights and your medium-term bookings.
Regulatory Outlook for London in 2026
The UK government’s planned short-term let registration scheme will apply to London properties. Some London boroughs are pushing for stricter enforcement of the 90-night rule and potentially tighter restrictions. However, the fundamental demand for short-term accommodation in London isn’t going anywhere — the city remains one of the world’s top tourist destinations and a global business hub.
Landlords who operate compliantly and professionally will continue to thrive, even as regulations evolve.
Is It Worth Hiring a London Airbnb Management Company?
Given London’s regulatory complexity and the need to maximise revenue within the 90-night window, professional management is particularly valuable. A good London management company will ensure every one of your 90 short-let nights generates maximum revenue through dynamic pricing and strategic calendar management. They’ll handle the transition between short-let and medium-term bookings seamlessly, keep you fully compliant with borough regulations, and manage the operational demands of London’s fast-paced guest turnover.
Get a London Property Valuation from HostaHome
HostaHome manages short-let properties across London, helping landlords navigate the 90-night rule while maximising annual income through our hybrid booking strategy. Get a free London property valuation and find out exactly how much your property could earn.
