Hello and welcome to StayinLondon blog! I haven’t spoken to you in a while so it’s great to have this update again. Today I wanted to talk about market overview, market trends and what’s happening with short-term rental market in London in June 2022. We’ve got great news - the market has recovered, almost fully, we’re back to pre-pandemic levels of occupancy so there’s a lot of interest in short-term rentals right now, people are travelling again.
Short-Term Lets In Demand
Of course what’s affecting the market is the fact that many property owners and landlords have chosen to take their properties off the short-term rental market and convert them to more traditional long-term lets and haven’t yet returned to the short-term model yet, which in turn has created a shortage in supply in airbnb’s in London. What we’ve also noticed is that domestic guests from the UK have decreased and international travellers have increased significantly which is great news, which means people are travelling again.
Pre-pandemic domestic was around 80% and now it’s only 30%, the rest is international travellers. What we’ve also noticed is that the booking window has decreased and not many people are choosing non-refundable policies and book 2-3 months in advance, now guests book only one or two weeks before the commencement of their trip. This might be caused by still existing uncertainty about travel regulations, airline cancellations etc.
Rise In Occupancy Rates
We’ve also looked at price levels of ADR (average daily rate) and we’ve compared apartments to 4-star hotels which show a 20% to 30% increase if you compare to pre-pandemic levels. This is great news for landlords as this gives an opportunity to generate a higher level of revenue. Also, occupancy rates are back to pre-pandemic levels and in our portfolio they are at 85-90% level and in some cases even up to 95% occupancy, which means we only have a few nights in the month that are still available.
If you are thinking about trying short-term rentals now is a great time to try it, especially if you’re planning to travel abroad for an extended period of time - it’s a great way of paying for your holiday. Please get in touch with us for a quote and we’ll talk you through all the details!
