The Insider's Guide to Airbnb Occupancy Rates in London

As one of the globe's must-see destinations, London boasts a vibrant combination of rich history, diverse culture, and contemporary style, making it a hotspot for tourists and a profitable opportunity for Airbnb hosts and holiday let owners alike. If you're a property owner in this vibrant metropolis, you know that the short-let market here is as bustling as the city itself. But in such a competitive landscape, how do you make your listing stand out? Understanding the complexities of Airbnb and holiday let occupancy rates in London can be your key to unlocking higher income and a consistent flow of satisfied guests.

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In this guide, we'll peel back the curtain on the data that shapes London's short-let market — real figures from the trackers that publish them, not just a single headline number. We will provide you with both the data and an in-depth analysis of what it means for you as a host. Are certain neighbourhoods more profitable than others? What impact do seasons and holidays have on occupancy? How do amenities and reviews factor into the equation? We'll answer all these questions and more.

And because we know that numbers are just part of the story, we'll offer you practical, actionable steps to boost your listing's occupancy rate and overall appeal.

An in-depth analysis of London's Airbnb occupancy rates

Occupancy trackers publish different numbers for the same city, and London is no exception. Rather than quote one figure as if it's settled, we've pulled from the two most commonly cited sources — AirDNA and Airbtics — and explain below why they don't agree, so you can read either one with the right context.

The broad view of UK-wide metrics

Across the UK, what counts as a "good" occupancy rate varies significantly by tracker and by market — coastal and rural holiday lets, for instance, often run well below London's numbers outside peak season. Rather than quote a single UK-wide average that won't reflect your specific area, the London-specific figures below are the more useful benchmark if that's where your property sits.

Focusing on London as a unique market

London significantly outperforms most of the UK on demand, but exactly how much depends on which tracker you ask:

• AirDNA puts London's average occupancy at 58%, across roughly 113,000 active listings, with an average daily rate of $234 (data to June 2026).
• Airbtics reports a considerably higher 74% median occupancy over the twelve months to January 2026, across around 49,000 listings, at an average daily rate closer to £152.

Neither figure is "wrong" — they're measuring different samples over different windows, with different definitions of an active listing, which is exactly why relying on a single quoted average (yours or a competitor's) can be misleading. What both trackers agree on: central boroughs with strong tourist and business demand — Westminster, Kensington & Chelsea, Camden — consistently outperform outer London, whether you're listing on Airbnb or running a wider holiday let.

Occupancy also isn't static across the year; both trackers show a clear summer peak and a January–February trough, in line with London's tourism and events calendar. Timing your pricing and availability around these peaks can provide a meaningful boost to your revenue.

Occupancy rates, adjusted occupancy rates & vacancy rates

When it comes to property management in the short let and holiday let industry, understanding the various metrics that impact your business is vital. Unlike traditional lettings, which have a straightforward booked or vacant status, the short let rental market adds another layer of complexity: the option to 'block' your listing. Here's a breakdown of these essential metrics and what they mean for your property's performance.

1) Occupancy rate: more than just bookings

Traditionally, the occupancy rate measures the number of days a property is booked over a specific period, usually a month. For instance, if your property is booked for 12 days out of a 30-day month, the occupancy rate is 40% (12/30). This basic measure is a good starting point, but it doesn't tell the full story.

2) Adjusted occupancy rate: the real picture

Enter the Adjusted Occupancy Rate, also known as the Booking Rate. This metric gives you a more accurate reading by considering only the days your property was actually available for booking. So, if your listing is booked for 12 days, vacant for another 12, and blocked for 6 days in a 30-day month, your adjusted occupancy rate becomes 50% (12/24). This paints a more precise picture of how well you're using your available dates.

3) Vacancy rate: the other side of the coin

While the occupancy rate tells you how well you're doing, the vacancy rate reveals opportunities for improvement. It calculates the number of days your listing is unoccupied but available for bookings. For example, if your property is vacant for 5 days in a 30-day month, the vacancy rate would be 16.7% (5/30). A lower vacancy rate typically means you are utilising your property's potential efficiently.

Key takeaways

1. Occupancy Rate: Useful, but not the end-all-be-all.
2. Adjusted Occupancy Rate: A more refined metric that accounts for blocked dates, offering a clearer view of performance.
3. Vacancy Rate: Shows the unoccupied potential of your property, helping you identify areas for improvement.

By understanding and monitoring these metrics, you can make informed decisions that will help optimise your property's earning potential. If you need professional guidance, we've got you covered. At Staymo, we offer unmatched expertise in key rental metrics, whether you're running a single Airbnb or a portfolio of holiday lets.

How can you improve your Airbnb occupancy rate?

When it comes to occupancy rate optimisation in London's competitive short-letting market, pricing is often a crucial factor.

Know your neighbours, price wisely

First and foremost, understanding the pricing strategy in your area is key. Being overpriced can leave you out of the game while underpricing can make potential guests suspicious of your listing's quality. The goal is to offer competitive rates that are a win-win for both you and your guests.

At Staymo, we combine real-time analytics with industry insights to help you achieve the perfect pricing strategy, ensuring your property's best performance.

Seasonal strategy

Seasonality plays a huge role in London's short-let and holiday let market. During peak tourist seasons, demand is high, so your prices should reflect that. On the flip side, the off-season offers a different kind of opportunity. Lowering your rates can attract budget-conscious travellers looking for a deal, helping maintain a healthy occupancy rate year-round.

Special offers and bundles

Who doesn't love a good deal? Offering special promotions or bundled experiences can make your property a go-to choice for experienced travellers. This not only boosts your off-season bookings but also encourages positive reviews, enhancing your reputation as a top-tier host.

Open your calendar ahead

The modern traveller loves to plan in advance. Keep your calendar open for a full year to catch those early birds. This is especially beneficial for off-season months, giving you a head start on filling those vacancies.

Flexible stays & instant book

Short stays? Long weekends? Be flexible with your minimum stay rules to appeal to a broader range of travellers, from weekend warriors to month-long vacationers.

Instant Book is a user-friendly option that lets guests book your property straight away, and a meaningful share of Airbnb reservations now go through it — enough that switching it off can measurably narrow your visibility in search. Once you've built up positive reviews, you have the flexibility to switch off Instant Book and be more selective.

Photos & description

First impressions are everything in the short-letting world. Professional photography is consistently linked to stronger earnings and higher occupancy across the industry, though the exact uplift varies by property and market. Your property description is your next selling point — the right words can make your listing irresistible. Whether you're offering a "modern, chic" city flat or a "cozy, quaint" country house, language matters.

At Staymo, we offer professional photography and expert copywriting services to make your property shine.

Write & encourage reviews

The value of a single good review is hard to overestimate. It can make your property stand out from the rest of the pack. Before checkout, kindly ask guests to share their experiences — a simple, friendly ask often does the trick.

But the magic really starts with your guest experience. We advise hosts to be proactive: keep lines of communication open, stock your home with quality amenities, and share your local knowledge.

Become a superhost

If you're looking to increase your occupancy rates, become an Airbnb Superhost. While you have to meet certain requirements in terms of cancellation rates and response rates, the enhanced visibility on Airbnb can lead to more bookings and higher occupancy rates.

Consider using a property manager

Another option to consider is partnering with a professional Airbnb or holiday let management service to fully realise your listing's potential. This is where Staymo comes in — we remove the guesswork from managing your property, whether it's listed as an Airbnb, a short let or a wider holiday let.

Frequently Asked Questions

What are typical holiday let occupancy rates in London?

It depends on the tracker: AirDNA reports a 58% average to June 2026, Airbtics a 74% median for the twelve months to January 2026. Both agree central boroughs outperform outer London, and that summer runs well ahead of the January–February trough.

What is a good occupancy rate for an Airbnb in London?

There's no single number that applies everywhere in London — location, property type and season all move it significantly. Use a current tracker for your specific area rather than a citywide average.

How can you estimate occupancy for a holiday let before buying?

Check a current tracker (AirDNA or Airbtics) for the specific postcode, not just the city average, since London's occupancy varies considerably by borough.

Do occupancy rates change by season in London?

Yes — both major trackers show a clear summer peak and a January–February trough, tracking London's tourism and events calendar.

Conclusion

Succeeding in London's competitive Airbnb and holiday let market requires more than just listing your property and hoping for the best. It demands a thorough understanding of the market dynamics, a strategic pricing model, engaging property descriptions, professional photos, and stellar guest experiences. And let's not forget the invaluable role of accurate, sourced data in shaping your strategy for peak performance.

If you're eager to maximise your property's income, Staymo offers the expertise, data and all-inclusive property management services to help. From setting the optimal price to offering 24/7 customer support and professional cleaning, we ensure every aspect of hosting is covered.

Disclaimer: This blog is for informational purposes only and should not be taken as financial or investment advice. Readers should seek independent professional advice where required.