The UK’s short-term rental market continues to demonstrate remarkable resilience and growth, reflecting fundamental shifts in how people travel. Guests increasingly seek properties offering authentic local experiences over traditional hotel accommodation. Whether you’re exploring your first Airbnb investment or expanding an existing portfolio, understanding which UK cities offer the strongest returns proves crucial for maximising your property’s potential whilst minimising risk.

Location fundamentally determines your Airbnb property’s success more than almost any other factor. The difference between a listing that struggles to maintain 40% occupancy and one consistently achieving 70% often comes down to strategic positioning within markets that align with contemporary travel patterns. We’ve analysed the UK’s most profitable Airbnb markets to help you identify opportunities that match your investment goals.

Is Airbnb Investment Still Profitable in 2026?

Absolutely, and the data supporting this remains compelling. The UK vacation rental market generated over 90 million guest nights in 2024, with sustained substantial demand across the country. This isn’t simply recovery from previous disruptions – it represents genuine market growth as travellers increasingly prefer the space, flexibility, and authentic experiences that well-managed short-term rentals provide.

Cities like London, Edinburgh, and Manchester maintain steady year-round demand driven by international tourism and business travel. However, the most exciting growth appears in markets beyond traditional urban centres. Coastal destinations including Cornwall and the Lake District have experienced remarkable demand increases as guests seek nature, space, and genuine respite from urban intensity.

What Makes a City Ideal for Airbnb Investment?

Several interconnected factors determine whether a city offers genuine Airbnb investment potential. Strong, diverse demand streams prove essential for consistent occupancy across all seasons. Cities attracting multiple visitor types (tourists, business travellers, university families, event attendees) demonstrate greater resilience than single-purpose destinations.

Transport infrastructure significantly influences booking patterns, particularly for international visitors and domestic travellers from London. Properties located within comfortable reach of major railway stations or airports consistently outperform comparable listings requiring complex journey planning. Understanding the local regulatory environment also impacts operational feasibility as much as market demand.

The Top 3 UK Cities for Airbnb Investment in 2026

The following cities represent the South West’s strongest Airbnb markets for 2026, where our extensive local expertise enables us to deliver exceptional results for property investors seeking hands-off management and maximum returns.

Bath – Premium Returns in a UNESCO World Heritage City

Bath represents one of the UK’s most profitable Airbnb markets relative to property prices, with projected annual revenues of £64,600 and impressive 70% occupancy rates. The city’s UNESCO World Heritage status, stunning Georgian architecture, and therapeutic spa waters attract discerning guests seeking cultural enrichment and relaxation, creating consistent demand throughout the year. Average daily rates of £261 reflect Bath’s premium positioning.

Bath’s compact, walkable layout proves ideal for short city breaks. The renowned Bath Christmas Market, numerous festivals, and year-round spa tourism help maintain strong shoulder-season bookings when coastal destinations experience significant declines. Properties featuring period details (original fireplaces, sash windows, ornate cornicing) whilst incorporating modern comfort consistently achieve the highest occupancy rates in this sophisticated market.

Bristol – The South West’s Rising Star

Bristol has emerged as one of the UK’s most exciting Airbnb markets, combining waterfront views, vibrant street art, and an independent food scene that appeals to travellers seeking alternatives to traditional tourist paths. Projected annual revenues of £51,300 with 59% occupancy demonstrate strong performance, whilst average daily rates of £239 reflect the city’s growing reputation.

The city’s rich cultural calendar generates consistent booking opportunities beyond typical tourism peaks. This steady flow of creative professionals, business travellers visiting Bristol’s aerospace and technology sectors, and tourists exploring the city’s maritime heritage creates balanced demand across weekdays and weekends. 

Cornwall – Coastal Profits Year-Round

Cornwall recorded an impressive 3.4 million guest nights in 2024, demonstrating that coastal markets can rival urban centres when managed strategically. Projected annual revenues of £42,700 with 68% occupancy rates prove that coastal properties deliver substantial returns, particularly when hosts optimise pricing across seasons.

The region’s rugged coastline, picturesque villages, and stunning beaches attract steady domestic tourism. Properties offering coastal views, outdoor space, and comfortable interiors for unpredictable weather consistently achieve the highest occupancy rates. The key to success involves strategic seasonal pricing -capturing premium rates during peak summer weeks whilst offering attractive off-season packages encouraging longer stays from remote workers seeking peaceful retreats.

Partner with Professional Management for Maximum Returns

Transforming a property into a thriving Airbnb investment requires more than simply listing it online and hoping for bookings. Our Airbnb management service across the South West handles every operational aspect that determines your property’s success – from professional photography and dynamic pricing optimisation to 24/7 guest communication and meticulous housekeeping coordination.

We’re particularly well-positioned to manage properties across Bath, Bristol, and Cornwall – three of the UK’s top-performing markets where our extensive local knowledge proves invaluable. Our transparent pricing structure, starting from 13% of booking subtotals, aligns our success directly with yours. With no hidden fees, straightforward service tailored to your property’s unique characteristics, and monthly financial reporting providing complete visibility, we deliver the professional management that transforms promising properties into consistently profitable investments.

Contact us today for your complimentary property valuation and discover how our expert Airbnb management service can transform your investment into a thriving, completely hands-free income stream capitalising on the South West’s enduring appeal to visitors nationwide.