Best Places to Airbnb in London: 2026 Neighborhood Guide

London is a tale of two cities for Airbnb hosts: massive profitability vs. the strict 90-day rule. Choosing the right neighborhood isn't just about "what's cool"—it's about where you can maximize that 90-day window or where you can legally operate year-round (if you have the rare planning permission).

In this guide, we analyze the top London boroughs for short-term rental investment in 2026 based on ADR (Average Daily Rate), Occupancy, and Regulatory Risk.

1. Shoreditch & Hackney: The Yield King

Best For: High Cash Flow, Younger Demographic

Shoreditch remains the beating heart of London's creative scene. It attracts a mix of tech workers (Silicon Roundabout) and tourists looking for nightlife.

• Avg Daily Rate: £190 - £250
• Occupancy: 85% (Very High)
• Guest Profile: Young professionals, couples, weekend party-goers.
• The Risk: Noise complaints. Hackney Council is aggressive about "party flats." You absolutely need a noise monitor here.

Pro Tip: Look for warehouse conversions near Old Street. They command a 20% premium over standard flats.

2. Kensington & Chelsea: The Stability Play

Best For: High Asset Value, Low Maintenance Guests

If you want guests who go to bed at 10 PM and pay £400/night, this is your spot. It's the most expensive entry point in London, but the clientele is top-tier.

• Avg Daily Rate: £350+
• Occupancy: 70% (Lower, but higher value)
• Guest Profile: Wealthy families, American tourists, business executives.
• The Risk: Neighbors. The residents here are wealthy and litigious. One suitcase wheel on the cobblestones at midnight will get you reported.

3. Camden Town: The Budget Warrior

Best For: Lower Entry Cost, High Volume

Camden allows you to buy/rent for less while maintaining high occupancy due to its legendary market and music scene.

• Avg Daily Rate: £140 - £180
• Occupancy: 88% (Massive demand)
• Guest Profile: Backpackers, music fans, students.
• The Risk: Wear and tear. Your furniture will take a beating. Don't buy expensive sofas.

The 90-Day Rule Reality Check

Remember, all of these neighborhoods are subject to the Greater London 90-Day Rule.

Your Strategy Options:

1. The Hybrid Model: Airbnb for 90 days (summer peak), Medium-term let (3+ months) for the rest of the year.
2. The Primary Residence: You live there and rent it out when you travel (perfect for Shoreditch creatives).
3. The Corporate Let: Rent to business travelers for 90+ days (best in Kensington/Canary Wharf).

Summary: Where Should You Invest?

Ready to calculate your potential returns? Use our London ROI Calculator to run the numbers.