New research by Wealth of Geeks looked at the number of nights rented on Airbnb, Booking.com, and Expedia Group from 1st July to 30th September 2023 and calculated how much each UK town makes in revenue.
Total revenue is calculated by multiplying the number of nights with the nightly cost of a room, a house, or an apartment on Airbnb. The most recent rental prices per night are taken from Airbnb across 388 UK towns to reveal the median rental price for each region and property type.
According to the research, Cornwall is the most profitable town for holiday rentals making an average of £40,060,440 through its rentals over the summer of 2023.
With the average nightly price of a room at £84 and the average price of a house at £117 per night and the price of an apartment at £113, Cornwall had a vast 476,910 nights from July to September 2023.
Whilst Cornwall's population is around 565,968, the town received triple the amount of holidaymakers last summer.
Westminster is the second most money-making UK town, generating an average of £34,441,270 over the three-month summer of 2023. A room in Westminster costs around £113, an apartment £147, and a house £435 per night. The Greater London town generated 304,790 nights last summer.
Camden takes the third spot for profitability, with 172,500 nights; the town generated an average of £21,217,500 over the summer of 2023. A nightly cost for a room in Camden is around £123, an apartment costs £156, and a house £140.
Hackney is the fourth UK town making the most profit from holiday rentals, with a total revenue of £20,430,280 from July to September 2023. With 101,140 nights, Airbnb’s in Hackney cost £123 a night per room, £140 a night per house and £156 a night per apartment.
Kensington and Chelsea ranked in the top five, with 167,770 nights last summer.
The average cost of a room per night in Kensington and Chelsea is £113, while the price of an apartment is £145, and a house is less, at £156. The town generated a total average of £18,874,125.
Rounding out the top ten most profitable UK towns are Brighton and Hove, Islington, Southwark, Tower Hamlets, and Lambeth.
A spokesperson for Wealth of Geeks has commented on the study findings: “In the summer of 2023, the UK holiday rental market made approximately £739,211,390, according to our data.
“Holiday rentals play a vital role in the UK's tourism industry by supporting local economies, providing accommodation to enhance visitor experience, and promoting tourism in diverse regions across the country.
“Tourism also helps to promote awareness of lesser-known areas, helping to distribute tourist spending more evenly across the country.
“While some destinations may experience seasonal fluctuations in tourism often in the summer months, holiday rentals attract visit year-round, helping to sustain economies and businesses during off-peak seasons.”
