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Airbnb and Short term demand in Hackney

Airbnb is often held up as a poster child for the gig economy but it has become a disruptor in the London property market too. The demand for short term lets in areas such as Hackney has increased significantly, resulting in a boom in listings on sites like Airbnb. Overall, Airbnb listings in London rose from 18,436 in 2015 to 74,153 in 2018. The Borough of Hackney alone saw an increase of 154%. So, what does this mean for the London property market and what are the potential advantages for property owners in Hackney?

Airbnb in Hackney

Hackney has become one of London's must visit spots. Here, there are the culinary adventures of Mare Street, one of London's most famous flower markets, cutting edge clubs, hipster boutiques, an extensive range of pubs and some East End institutions, such as the Hackney Empire. As a result, the demand for Airbnb and short term lets in this part of the capital has gone through the roof. As an option for short-term lets Hackney hits all the right notes with potential guests. It's well connected to the rest of the city and has a lot to offer within the boundaries of the borough too. For property owners there's great potential to cash in - a typical Airbnb listing in London charges £109 but average prices in Hackney are £117 a night for an entire home.

Catering to Airbnb and short term demand in Hackney

Recent news reports have indicated that London sale values have dropped significantly but rents continue to rise. In an area like Hackney, which is such a hot spot with visitors and short term renters, monthly charges are still moving in an upward direction. For homeowners looking to convert an existing property into a short term let there are a few key details to bear in mind.

  • The 90-day rule. Entire home listings on Airbnb are now automatically limited to 90 days. This is as a result of recent legal changes in the UK that mean if a property is being let out for longer than this each year, this constitutes a change of use and planning permission is required. Whether or not you're using AirBnB to handle the admin you'll need to have this planning permission in place to avoid hefty five figure fines if you're planning to let for more than 90 days a year.
  • The importance of aesthetics. Tenants don't bring their own furniture to short term lets but still want the comfort and convenience of a fully furnished home. The secret is to achieve a balance between attractive aesthetics and effective functionality - you can achieve around a 10% increase in rent with a minimum investment with the right interior design.
  • Good management is key. Particularly if you have a high turnover of guests it's crucial to manage short term lets well - your reputation and reviews may depend on it. Many property owners looking to cash in on this market prefer to pass this to professional lettings specialists.

Demand continues to increase for short term and Airbnb rentals in Hackney. If you'd like to know how to make money in this market we can help - contact us to find out more.

Resource: https://www.finder.com/uk/london-airbnb-statistics

21 February 2019Written by Andrew Blythe

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