Only being able to let a property out through Airbnb for three months in London means traditional rental models remain the best way to get a return on an investment in London. As a landlord, unless your property has written exemption from the restriction from the relevant local council, employing a standard letting model will yield the fastest results according to the latest research by online estate agency Nested.
The firm looked at the average cost of a a three-bedroom property compared to the average amounts it could be rented through both traditional agencies and Airbnb.
The best performing London borough was Southwark with an average outlay of £1,004,993, taking 321 months to recoup that through a standard rental model.
Before the Airbnb rules changed on January 1, or with exemption in writing, that drops to 90 months through Airbnb but rises to 360 with the changes.
Since the restriction came into force, London is now, by some margin, the city where investors will see the slowest returns. Nested found it would take the landlord of the average three-bed 367 months to get their £907,038 with Airbnb taking 704 months.
In contrast a similar property in Sheffield would make its £144,255 back in 169 months traditionally or as little as 36 months through the sharing website.
As for east London, Barking And Dagenham was the fourth best performer with traditional renters paying off their landlord’s three-bed in 144 months with Newham in fifth place with 331 months.
The least affordable borough to buy in was Kensington And Chelsea where 496 months of rent would be needed to recoup an average three-bed outlay of £3,593,168.
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