London Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Ontario, Canada

Source: AirROI
Last updated: 2025-03-31

Is Airbnb profitable in London in 2025? Explore comprehensive Airbnb analytics for London, Ontario, Canada to uncover income potential. This 2025 STR market report for London, based on AirROI data from April 2024 to March 2025, reveals key trends in the market of 634 active listings.

Whether you're considering an Airbnb investment in London, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the London Airbnb data is crucial. Leveraging the low regulation environment is key to maximizing your short term rental income potential. Let's dive into the specifics.

Key London Airbnb Performance Metrics Overview

Avg. Daily Rate (ADR)(?)
$89
The average rental revenue earned for an occupied room per day in London.
Occupancy Rate(?)
48.6%
Moderate demand with booking opportunities.
Median Annual Revenue(?)
$13,440
Typical annual income for an Airbnb listing in London. Factors like property type, size, and location influence actual earnings.
Revenue Growth YoY(?)
17.1%
Strong growth (17.1%) vs. last year.
Peak Revenue Month(?)
June
The month with the highest average earnings, indicating peak season in London.
Lowest Revenue Month(?)
February
The month with the lowest average earnings, indicating the low season in London.
STR Regulation Level(?)
Low
Fewer regulations, offering more operational flexibility.
Active Airbnb Listings(?)
634
Total number of active short-term rentals listed.

Monthly Airbnb Revenue Variations & Income Potential in London (2025)

Understanding the monthly revenue variations for Airbnb listings in London is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in London is typically June, while February often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in London across different performance tiers:

  • Best-in-class properties (Top 10%) achieve $3,114+ monthly, often utilizing dynamic pricing and superior guest experiences.
  • Strong performing properties (Top 25%) earn $2,178 or more, indicating effective management and desirable locations/amenities.
  • Typical properties (Median) generate around $1,339 per month, representing the average market performance.
  • Entry-level properties (Bottom 25%) see earnings around $607, often with potential for optimization.

Average Monthly Airbnb Earnings Trend in London

London Airbnb Occupancy Rate Trends (2025)

Maximize your bookings by understanding the London STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Septembersees the highest demand (peak season occupancy), while March experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in London:

  • Best-in-class properties (Top 10%) achieve 88%+ occupancy, indicating high desirability and potentially optimized availability.
  • Strong performing properties (Top 25%) maintain 73% or higher occupancy, suggesting good market fit and guest satisfaction.
  • Typical properties (Median) have an occupancy rate around 52%.
  • Entry-level properties (Bottom 25%) average 27% occupancy, potentially facing higher vacancy.

Average Monthly Occupancy Rate Trend in London

Average Daily Rate (ADR) Airbnb Trends in London (2025)

Effective short term rental pricing strategy in London involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in London typically peaks in July and dips lowest during February. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:

  • Best-in-class properties (Top 10%) command rates of $152+ per night, often due to premium features or locations.
  • Strong performing properties (Top 25%) achieve nightly rates of $107 or more.
  • Typical properties (Median) charge around $75 per night.
  • Entry-level properties (Bottom 25%) earn around $49 per night.

Average Daily Rate (ADR) Trend by Month in London

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Airbnb Seasonality Analysis & Trends in London (2025)

Peak Season (June, May, April)
  • Revenue averages $1,964 per month
  • Occupancy rates average 48.0%
  • Daily rates average $95
Shoulder Season
  • Revenue averages $1,664 per month
  • Occupancy maintains around 54.8%
  • Daily rates hold near $93
Low Season (January, February, March)
  • Revenue drops to average $1,129 per month
  • Occupancy decreases to average 43.9%
  • Daily rates adjust to average $85

Seasonality Insights for London

  • The Airbnb seasonality in London shows moderate seasonality with distinct peak and low periods. While the sections above show seasonal averages, it's also insightful to look at the extremes:
  • During the high season, the absolute peak month showcases London's highest earning potential, with monthly revenues capable of climbing to $2,086, occupancy reaching a high of 59.1%, and ADRs peaking at $96.
  • Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $1,077, occupancy could drop to 40.9%, and ADRs may adjust down to $84.
  • Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in London.

Seasonal Strategies for Maximizing Profit

  • Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
  • Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
  • Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
  • Regularly analyze your own performance against these London seasonality benchmarks and adjust your pricing and availability strategy accordingly.

Best Areas for Airbnb Investment in London (2025)

Exploring the top neighborhoods for short-term rentals in London? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.

Neighborhood / AreaWhy Host Here? (Target Guests & Appeal)Key Attractions & Landmarks
Downtown London
The city center with a variety of restaurants, shops, and cultural attractions. It's lively and attracts visitors for its events, festivals, and nightlife.
London Convention Centre, Budweiser Gardens, Covent Garden Market, London Museum, Forks of the Thames
Old South
A historic neighborhood known for its charming homes, parks, and proximity to the busy Wortley Village. Great for families and those seeking a quieter, scenic area.
Wortley Village, Springbank Park, London Public Library - Crouch Branch, The Thames Valley Parkway
East London
An up-and-coming area that offers affordability and access to parks and community centers. Ideal for budget-conscious travelers and families.
Greenway Park, East Park, London Children's Museum, St. Julien Park
North London
A suburban area with family-friendly neighborhoods, good schools, and access to shopping centers. Attracts families and long-term visitors.
Fanshawe Conservation Area, Northland Mall, White Oaks Mall, Western University
South London
A popular residential area with many amenities and parks, making it great for families and extended stays.
Westminster Ponds, London Health Sciences Centre, Argyle Mall
Byron
A suburban neighborhood known for its parks and desirable schools, making it popular for families visiting London.
Byron Village, Springbank Park, Hugh McGuigan Park
Westmount
A vibrant area with shopping, dining, and parks, offering a good mix of urban and suburban living experiences.
Westmount Shopping Centre, Cedar Hollow Park, Kinsmen Park
Masonville
A bustling area known for its shopping mall and entertainment options, appealing to younger crowds and families alike.
Masonville Place, Civic Gardens Complex, North London Optimist Community Centre

Understanding Airbnb License Requirements & STR Laws in London (2025)

While London, Ontario, Canada currently shows low STR regulations, specific Airbnb license requirements might still exist or change. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for London to ensure full compliance before hosting.

(Source: AirROI data, 2025, based on 6% licensed listings)

Top Performing Airbnb Properties in London (2025)

Benchmark your potential! Explore examples of top-performing Airbnb properties in Londonbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.

Modern Newly Built 4 Bedroom House in West London

Modern Newly Built 4 Bedroom House in West London

Entire Place • 4 bedrooms

$94,834
Revenue
46.6%
Occupancy
$383.27
Daily Rate
Sleeps 14|Ping-Pong|BBQ|Fire Pit|ArcadeGames

Sleeps 14|Ping-Pong|BBQ|Fire Pit|ArcadeGames

Entire Place • 5 bedrooms

$83,485
Revenue
74.4%
Occupancy
$290.07
Daily Rate
Brand New Modern *Luxury* Villa

Brand New Modern *Luxury* Villa

Entire Place • 5 bedrooms

$77,465
Revenue
46.4%
Occupancy
$410.61
Daily Rate
Luxury 5 Bedroom with 2 Masters in North London

Luxury 5 Bedroom with 2 Masters in North London

Entire Place • 5 bedrooms

$72,868
Revenue
50.5%
Occupancy
$375.19
Daily Rate
4 Bedroom + 3.5 Bath + Close to Amenities/Hwy/Dt

4 Bedroom + 3.5 Bath + Close to Amenities/Hwy/Dt

Entire Place • 4 bedrooms

$68,129
Revenue
77.4%
Occupancy
$229.77
Daily Rate
Cheerful 3 Bedroom Home in North West London

Cheerful 3 Bedroom Home in North West London

Entire Place • 3 bedrooms

$65,909
Revenue
43.2%
Occupancy
$284.15
Daily Rate

Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.

Top Performing Airbnb Hosts in London (2025)

Learn from the best! This table showcases top-performing Airbnb hosts in London based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.

Host NamePropertiesGrossing RevenueStay ReviewsAvg Rating
Prince5$331,1641104.83/5.0
Kati9$199,2014034.71/5.0
Joe8$191,6543364.10/5.0
Tanya7$178,5304504.82/5.0
Damian9$175,9552874.28/5.0
James7$143,3284854.88/5.0
Manan7$110,4521033.66/5.0
Jennifer5$103,8765063.84/5.0
Paula3$101,5464834.97/5.0
Fawwaz3$100,7301834.85/5.0

Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in London.

Dive Deeper: Advanced London STR Market Data (2025)

Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for London. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.

Explore Advanced Metrics

London Short-Term Rental Market Composition (2025): Property & Room Types

Room Type Distribution

Property Type Distribution

Market Composition Insights for London

  • The London Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 69.4% of the 634 active rentals. This indicates strong guest preference for privacy and space.
  • However, a notable 30.3% share for Private Rooms suggests opportunities for budget-conscious travelers or hosts renting out spare rooms.
  • Looking at the property type distribution in London, House properties are the most common (57.6%), reflecting the local real estate landscape.
  • Houses represent a significant 57.6% portion, catering likely to families or larger groups.
  • Smaller segments like hotel/boutique, outdoor/unique, unique stays (combined 1.5%) offer potential for unique stay experiences.

London Airbnb Room Capacity Analysis (2025): Bedroom Distribution

Distribution of Listings by Number of Bedrooms

Room Capacity Insights for London

  • The dominant room capacity in London is 1 bedroom listings, making up 34.1% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
  • Together, 1 bedroom and 2 bedrooms properties represent 54.6% of the active Airbnb listings in London, indicating a high concentration in these sizes.
  • A significant 21.1% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in London.

London Vacation Rental Guest Capacity Trends (2025)

Distribution of Listings by Guest Capacity

Guest Capacity Insights for London

  • The most common guest capacity trend in London vacation rentals is listings accommodating 2 guests (25.9%). This suggests the primary traveler segment is likely couples or solo travelers.
  • Properties designed for 2 guests and 4 guests dominate the London STR market, accounting for 44.4% of listings.
  • 21.8% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in London.
  • On average, properties in London are equipped to host 3.1 guests.

London Airbnb Booking Patterns (2025): Available vs. Booked Days

Available Days Distribution

Booked Days Distribution

Booking Pattern Insights for London

  • The most common availability pattern in London falls within the 271-366 days range, representing 33% of listings. This suggests many properties have significant open periods on their calendars.
  • Approximately 62.2% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
  • For booked days, the 181-270 days range is most frequent in London (30.6%), reflecting common guest stay durations or potential owner blocking patterns.
  • A notable 40.5% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.

London Airbnb Minimum Stay Requirements Analysis

Distribution of Listings by Minimum Night Requirement

1 Night (37.1%)

1 Night

210 listings

37.1% of total

2 Nights (22.6%)

2 Nights

128 listings

22.6% of total

3 Nights (6.9%)

3 Nights

39 listings

6.9% of total

4-6 Nights (6.9%)

4-6 Nights

39 listings

6.9% of total

7-29 Nights (13.4%)

7-29 Nights

76 listings

13.4% of total

30+ Nights (13.1%)

30+ Nights

74 listings

13.1% of total

Key Insights

  • The most prevalent minimum stay requirement in London is 1 Night, adopted by 37.1% of listings. This highlights the market's preference for shorter, flexible bookings.
  • A significant segment (13.1%) caters to monthly stays (30+ nights) in London, pointing to opportunities in the extended-stay market.

Recommendations

  • Align with the market by considering a 1 Night minimum stay, as 37.1% of London hosts use this setting.
  • Explore offering discounts for stays of 30+ nights to attract the 13.1% of the market seeking extended stays.
  • Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in London.

London Airbnb Cancellation Policy Trends Analysis (2025)

Super Strict 60 Days

3 listings

0.6% of total

Flexible (20.4%)

Flexible

109 listings

20.4% of total

Moderate (32%)

Moderate

171 listings

32% of total

Firm (14.4%)

Firm

77 listings

14.4% of total

Strict (32.6%)

Strict

174 listings

32.6% of total

Cancellation Policy Insights for London

  • The prevailing Airbnb cancellation policy trend in London is Strict, used by 32.6% of listings.
  • There's a relatively balanced mix between guest-friendly (52.4%) and stricter (47.0%) policies, offering choices for different guest needs.

Recommendations for Hosts

  • Consider adopting a Strict policy to align with the 32.6% market standard in London.
  • With 32.6% using Strict terms, this is a viable option in London, particularly for high-value properties or during peak demand periods.
  • Regularly review your cancellation policy against competitors and market demand shifts in London.

London STR Booking Lead Time Analysis (2025)

Average Booking Lead Time by Month

Booking Lead Time Insights for London

  • The overall average booking lead time for vacation rentals in London is 39 days.
  • Guests book furthest in advance for stays during November (average 57 days), likely coinciding with peak travel demand or local events.
  • The shortest booking windows occur for stays in March (average 29 days), indicating more last-minute travel plans during this time.
  • Seasonally, Fall (51 days avg.) sees the longest lead times, while Winter (38 days avg.) has the shortest, reflecting typical travel planning cycles.

Recommendations for Hosts

  • Use the overall average lead time (39 days) as a baseline for your pricing and availability strategy in London.
  • For November stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 57 days out to capitalize on advance planning.
  • Target marketing efforts for the Fall season well in advance (at least 51 days) to capture early planners.
  • Monitor your own booking lead times against these London averages to identify opportunities for dynamic pricing adjustments.

Popular & Essential Airbnb Amenities in London (2025)

Amenity Prevalence

Amenity Insights for London

  • Essential amenities in London that guests expect include: Wifi, Smoke alarm, Heating, Carbon monoxide alarm, Air conditioning. Lacking these (any) could significantly impact bookings.
  • Popular amenities like Hot water, Free parking on premises, Kitchen are common but not universal. Offering these can provide a competitive edge.

Recommendations for Hosts

  • Ensure your listing includes all essential amenities for London: Wifi, Smoke alarm, Heating, Carbon monoxide alarm, Air conditioning.
  • Prioritize adding missing essentials: Wifi, Smoke alarm, Heating, Carbon monoxide alarm, Air conditioning.
  • Consider adding popular differentiators like Hot water or Free parking on premises to increase appeal.
  • Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
  • Regularly check competitor amenities in London to stay competitive.

London Airbnb Guest Demographics & Profile Analysis (2025)

Guest Origin: Domestic vs. International
Top 5 Cities of Origin
Top 5 Countries of Origin
Top 5 Languages Spoken
Guest Age Distribution (Birth Decade)

Guest Profile Summary for London

  • The typical guest profile for Airbnb in London consists of primarily domestic travelers (79%), often arriving from nearby Toronto, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or French.
  • Domestic travelers account for 79.4% of guests.
  • Key international markets include Canada (79.4%) and United States (11.7%).
  • Top languages spoken are English (64.1%) followed by French (10%).
  • A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.

Recommendations for Hosts

  • Target domestic marketing efforts towards travelers from Toronto and London.
  • Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
  • Highlight unique local experiences or amenities relevant to the primary guest profile.
  • Consider seasonal promotions aligned with peak travel times for key origin markets.

Nearby Short-Term Rental Market Comparison

How does the London Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.

MarketActive PropertiesMonthly RevenueDaily RateAvg. Occupancy
Huron Township16$5,955$423.0844%
Forester11$5,685$390.4843%
Peninsula15$4,588$318.5651%
Hudson12$4,226$270.6859%
Huron122$3,867$338.5941%
Port Sanilac30$3,765$470.8534%
Chagrin Falls16$3,729$240.5951%
Catawba Island Township14$3,594$384.9745%
Avon Lake20$3,489$210.0850%
Harrison Township24$3,464$248.3250%

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