Top 10 Airbnb Markets in the UK in 2025

The UK has long been a favourite among global travellers and in 2025, its short-term rental market continues to show signs of increasing demand. From scenic countryside escapes to buzzing city hubs, the diversity of the UK’s landscape makes it a lucrative market for Airbnb investors and hosts alike.

But with so many options across the country, selecting the ideal location for your Airbnb property isn’t as simple as it used to be. The difference between a listing that performs modestly and one with high occupancy rates often comes down to where — not just what — you’re offering. Whether you're a seasoned Airbnb host expanding your portfolio or exploring your first Airbnb investment, understanding where demand is headed is crucial.

In this article, we explore the top 10 Airbnb markets in the UK in 2025, offering insight into what makes each destination unique, what kinds of guests they attract and how you can align your strategy with these growing hotspots to maximize both bookings and profitability.

Are Vacation Rentals in the UK a Good Investment?

Yes, and 2025 is proving to be a great time to get in.

Cities like London, Edinburgh and Manchester attract steady demand from international tourists, business travellers and students, making them strong picks for Airbnb investment. But the real growth? It’s spreading. More guests are heading to rural spots for nature, space and a break from busy city life creating new opportunities for hosts outside traditional markets.

According to Statista, the UK vacation rental market is set to hit $4.68 billion in 2025, with 78% of revenue coming from online bookings. That’s a big signal that digital strategy matters — and that the market is alive and well.

Between consistent income, long-term property value and even a few tax perks, owning an Airbnb property in the UK can be both profitable and personally rewarding — if you choose the right place.

Key UK Vacation Rental Statistics

The numbers are in and they paint a clear picture of just how active the UK’s short-term rental market has been.

According to the Office for National Statistics (ONS) from January to December 2024, guests spent a massive 90.1 million nights in UK vacation rentals. England led the way, accounting for 70.3 million guest nights, which is about 78% of the total. Scotland followed with 11.4 million nights (12.7%), then Wales with 6.3 million (6.9%) and Northern Ireland with 2.2 million (2.4%).

As expected, August was the busiest month for bookings, with 12.8 million guest nights — more than three times higher than January, the quietest month, which saw just 3.7 million. The summer surge clearly continues to drive a big portion of annual demand, especially in holiday-friendly destinations.

Interestingly, bookings aren’t spread out evenly across the country. In fact, just 10 localities were responsible for over 26% of all guest nights in the UK. That means demand is highly concentrated in a handful of hotspots.

Some of the top-performing areas included Westminster in London (3.9 million guest nights), Cornwall (3.4 million), Edinburgh (3.0 million) and the Scottish Highlands (2.6 million). To give you an idea of how far above average these places are, the UK-wide average per local authority was just 250,000 guest nights.

For hosts and investors, this data offers a valuable signal. If you’re entering a high-demand area, you’re likely facing more competition — but also more opportunity. And if you’re considering less saturated regions, there’s still strong potential to grow — especially if you offer something unique and manage it well.

Top 10 Airbnb Markets in the UK in 2025

1. London

It’s no surprise that London tops the list again in 2025. As the UK’s most visited city, it continues to attract a steady flow of tourists, business travellers and domestic guests year-round. From iconic attractions like the Tower of London and West End theatres to its buzzing food and culture scene, there’s no shortage of reasons people book here.

What sets London apart isn’t just volume — it’s versatility. Whether you're renting out a studio flat in Shoreditch, a serviced apartment in Westminster or a family home in Camden, there’s a market for it. As mentioned previously, Westminster alone recorded 3.9 million guest nights last year — the highest of any local authority in the UK. That’s more bookings than many entire regions.

While competition is fierce, so is opportunity. Hosts who offer thoughtful amenities, flexible stays or standout design can still carve out a profitable niche in the capital. And with demand staying strong in both peak and shoulder seasons, London remains one of the most resilient short-term rental markets in the UK.

According to AirDNA,

• Projected annual revenue:  £112.9K

• Occupancy rate: 79%

• Average daily rate (ADR): £389

• Annual operating expense: £36k

• Net operating income: £76.8k

2. Edinburgh 

Edinburgh, Scotland’s capital continues to hold strong as one of the top Airbnb markets in the UK. With its iconic castle skyline, winding cobbled streets and world-class festivals, Edinburgh blends history and modern appeal in a way few cities can match.

The city’s biggest booking spike usually arrives in August during the Edinburgh Festival Fringe, the world’s largest arts festival — which brings in performers and visitors from around the globe. But this isn’t just a seasonal market. Demand for short-term stays remains high throughout the year, thanks to international tourism, university events and even film tourism.

Last year, Edinburgh recorded 3 million guest nights, making it one of the most booked cities in the UK. That stat reflects not just popularity, but consistency — a key trait for hosts and investors looking for reliable returns.

Whether it’s a city centre flat or a quiet residential townhouse, Airbnb properties in Edinburgh benefit from both fantastic location and lifestyle appeal. And with guests increasingly looking for stays that combine charm, walkability and culture, Edinburgh delivers on all fronts.

According to AirDNA, 

• Projected Annual Revenue  £18.1 K

• Occupancy rate 70%

• Average Daily Rate £71

• Annual operating expense: £7.9k

• Net operating income: £14.3k

3. Cornwall 

When it comes to UK staycations, Cornwall continues to be one of the top picks — and it’s easy to see why. With its rugged coastline, picturesque villages and postcard-worthy beaches, Cornwall attracts a steady stream of domestic travellers, particularly during spring and summer.

In recent years, demand for rural and coastal Airbnb properties has skyrocketed and Cornwall remains at the heart of that trend. From surfing in Newquay to cliff walks in St Ives, guests come for the slower pace and outdoor lifestyle — making it an ideal market for everything from beach huts to family-sized cottages.

Cornwall recorded an impressive 3.4 million guest nights, last year putting it just behind Westminster and Edinburgh in terms of total bookings. That makes it not just a seasonal favourite, but a top-performing short-term rental market overall.

For hosts, the key to success here is seasonal optimization — pricing strategically during peak months and offering cozy, well-equipped spaces for off-season travellers. With the right setup, Cornwall Airbnb listings can deliver big returns in a laid-back, scenic setting.

According to AirDNA, 

• Projected Annual Revenue  £42.7 K

• Occupancy rate 68%

• Average Daily Rate £145

• Annual operating expense: £9.7k

• Net operating income: £26.1k

4. Manchester

Manchester has long been known for its music, football and creative energy — but in 2025, it’s also earning recognition as one of the UK’s fastest-growing Airbnb markets. Thanks to a strong blend of tourism, business travel and student traffic, this northern city offers hosts a balanced, year-round demand profile.

What sets Manchester apart is its versatility. It’s equally popular for weekend getaways, concerts and sporting events and longer stays tied to university life or corporate travel. As the city continues to invest in regeneration projects and new event spaces, visitor numbers — and booking potential — keep climbing.

For Airbnb hosts and investors, Manchester offers a lower barrier to entry than London or Edinburgh, but with growing returns. Neighborhoods like Northern Quarter, Ancoats and Didsbury are particularly attractive for stylish flats and modern listings that appeal to a younger, design-savvy audience.

According to AirDNA,

• Projected Annual Revenue  £53.2K

• Occupancy rate 60%

• Average Daily Rate £243

• Annual operating expense: £7.9k

• Net operating income: £14.3k

5. The Scottish Highlands

If you think rural can't be profitable, the Highlands are here to prove otherwise. With wide open landscapes, dramatic mountains and loch-side views, this region of Scotland continues to attract guests looking for peace, nature and unplugged experiences.

The Highlands recorded 2.6 million guest nights, last year making it one of the most booked rural destinations in the UK. That’s especially impressive when you consider how spread out and low-density the area is. It shows that travelers are actively seeking out remote stays — and are willing to pay for them.

Guests in The Highlands typically stay longer, travel as families or couples and are often looking for comfort, privacy and a chance to disconnect. That means properties with scenic views, wood burning fireplaces, outdoor space or hot tubs tend to perform particularly well.

For hosts, this is a market that rewards quality over quantity. With lower turnover and year-round appeal — especially for walkers, wildlife lovers and digital detoxers — The Highlands offer strong income potential in a naturally stunning setting.

According to AirDNA statistics,

• Projected Annual Revenue  £22.3K

• Occupancy rate 63%

• Average Daily Rate £97

• Annual operating expense: £7.9k

• Net operating income: £14.3k

6. Bristol

Bristol has been quietly climbing the Airbnb charts and cementing its place as one of the UK’s most exciting mid-size markets. With its blend of waterfront views, street art and independent food scene, it appeals to city break travellers who want something a little different from the usual tourist path.

Tourism is on the rise, with the UK projected to receive 21.1 million inbound visits and £16.9 billion in spending. Bristol now ranks as the 8th most visited UK city by international visitors — impressive for a city of its size. International stays account for 25% of all overnight trips, but those travelers punch above their weight, contributing 49% of total guest nights and nearly half (47%) of all visitor spend boosting the local economy.

Adding to its appeal is Bristol’s rich cultural calendar. The city hosts 11 international film festivals annually, attracting a steady stream of creative professionals, tourists and locals alike. This consistent flow of events means more booking opportunities — and more diverse guest profiles.

According to AirDNA,

• Projected Annual Revenue  £51.3K

• Occupancy rate 59%

• Average Daily Rate £239

• Annual operating expense: £13.3k

• Net operating income: £27.1k

7. Bath

Tucked into the Somerset hills, Bath is a premium Airbnb market in the UK. Known for its Roman baths, Georgian architecture and boutique shopping streets, the city draws in a steady stream of culture lovers, spa-goers and weekend escape artists particularly those keen on the lively arts scene Bath has to offer.

What makes Bath stand out isn’t just guest numbers — it’s booking quality. Visitors here tend to book shorter but higher-value stays, often seeking out charming townhouses, elegant flats or period homes with a bit of historic character. That makes it an excellent location for hosts focused on luxury or design-driven listings.

Its compact size and walkable layout make it ideal for short city breaks, especially among couples and small groups. Events like the Bath Christmas Market, literary festivals and wellness retreats help support demand outside the summer peak.

For Airbnb hosts, Bath is a market that rewards curation. Listings that lean into aesthetic detail, comfort and a sense of place tend to perform well — and with the right pricing strategy, returns can be strong even with moderate occupancy.

According to AirDNA,

• Projected Annual Revenue  £64.6K

• Occupancy rate 70%

• Average Daily Rate £261

• Annual operating expense: £16.6k

• Net operating income: £33.3k

8. Brighton

Brighton continues to shine as one of the UK’s most vibrant and in-demand coastal Airbnb markets. Just an hour from London by train, it’s the go-to spot for quick getaways, romantic weekends, group celebrations and summer holidays — with a distinct personality that sets it apart from traditional beach towns.

The city’s strong appeal lies in its diverse guest base. From artsy solo travellers and digital nomads to families and hen-dos, Brighton draws people for all kinds of reasons — its pebble beach, pier, independent shops and thriving nightlife. And with a calendar full of events, festivals and performances, there’s rarely a quiet weekend.

Hosts here benefit from high occupancy rates, especially on weekends and during warmer months. Compact, well-located listings in areas like The Lanes, Kemptown or Hove tend to do particularly well — especially if they play into Brighton’s creative, laid-back vibe.

Whether it’s a blue house by the seafront or a stylish terrace tucked behind a café-lined street, Airbnb properties in Brighton combine city energy with coastal charm and that’s a winning mix in today’s market.

According to AirDNA,

• Projected Annual Revenue  £50.5K

• Occupancy rate 53%

• Average Daily Rate £259

• Annual operating expense: £7.9k

• Net operating income: £14.3k

9. Lake District

If you’re looking for a market where natural beauty does the heavy lifting, the Lake District is a top-tier choice. As one of the UK’s most iconic national parks, it continues to be a magnet for walkers, nature lovers, families and romantic getaways — making it a powerhouse for rural Airbnb bookings.

Guests don’t just visit here — they stay longer. Many travellers book multi-night escapes to unwind, explore and soak in the stunning landscapes. This means higher booking value, lower turnover and a more relaxed hosting rhythm compared to urban markets.

Properties that perform best here tend to lean into the setting — think stone cottages, log cabins or modern homes with large windows, wood-burning stoves and outdoor space. Add a hot tub or a great view and you’ve got a listing that practically markets itself.

With year-round appeal — from autumn foliage to snowy hilltops — the Lake District is proof that rural doesn’t mean seasonal. For hosts, it offers a unique chance to combine sustainable income with scenery that sells.

According to AirDNA,

• Projected Annual Revenue  £59.2K

• Occupancy rate 63%

• Average Daily Rate £278

• Annual operating expense: £9.7k

• Net operating income: £26.1k

10. York

York may be compact, but when it comes to short-term rental performance, it does well above its size. With its medieval walls, Viking roots and postcard-perfect streets, the city is a magnet for heritage tourism, couples’ getaways and family stays all year round.

With 8.9 million visitors annually contributing £1.7 billion to the local economy, York’s tourism scene is both vibrant and reliable. Its strong year-round draw and historical significance make it an ideal place to invest in vacation rental properties. It’s has a strong demand from history enthusiasts, weekenders and multi-generational families alike.

Airbnb guests here tend to value comfort, authenticity and proximity to the action. Listings in or near the city centre, especially those with period features or modern updates in old buildings, are often top earners. And with a strong events calendar — from the Jorvik Viking Festival to Christmas markets — there’s demand in every season.

For investors or hosts who want steady returns without big-city chaos, York offers a strong mix of affordability, reliability and lasting appeal.

According to AirDNA,

• Projected Annual Revenue  £36.7K

• Occupancy rate 69%

• Average Daily Rate £159

• Annual operating expense: £11k

• Net operating income: £25.7k

Where You Invest Matters More Than Ever

As the UK’s vacation rental market continues to grow, it’s clear that location isn’t just a detail — it’s a difference-maker. From global hubs like London and Edinburgh to rural gems like Bath and the Scottish Highlands, 2025 presents a wide range of opportunities for both new and experienced Airbnb hosts.

The data shows that guest demand isn’t just rebounding — it’s evolving. Travelers are seeking out a broader mix of experiences, from cultural festivals and business travel to digital detoxes and coastal escapes. That means understanding your market’s strengths, investing with purpose and tailoring your listing to guest preferences will be more important than ever.

Whether you’re focused on high occupancy, high nightly rates or high-quality guests, the UK offers something for every kind of host. And with smart strategy, great design and the right tools behind you, your next Airbnb success story might be one smart location away.