10 UK Holiday Let Markets That Offer the Best Returns for Hosts in 2026

Planning to list your property on Airbnb or looking to expand your short-term rental portfolio in the UK? Understanding which markets are delivering strong occupancy rates and nightly rates is crucial for hosts and property managers making investment decisions in 2026.

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At Beyond, we've analysed performance data from thousands of short-term rental (STR) listings across major UK cities to reveal where holiday lets are generating the strongest returns. Whether you're managing your first listing or running multiple properties, these benchmarks can help you set realistic revenue expectations and optimise your pricing strategy.

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The data shows significant variation in how different UK cities are performing. Edinburgh stands apart as the clear leader, whilst major cities like Manchester and London face challenges with lower occupancy. Here's what the numbers tell us about the UK short-term rental market in 2026.

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Edinburgh Dominates UK Holiday Let Performance

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Edinburgh leads all UK cities with 61% occupancy and an impressive £138.47 average nightly rate. The Scottish capital's combination of year-round tourism appeal, festival season demand, and limited hotel inventory creates ideal conditions for STR hosts.

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For property managers operating in Edinburgh, the data confirms what many already know: the city commands premium pricing whilst maintaining occupancy levels well above the national average. This performance gap suggests Edinburgh's appeal to tourists remains uniquely strong compared to other UK destinations.

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University Cities Show Promise but Diverge

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Oxford, Cambridge, and Glasgow all register 48% occupancy, but their nightly rates tell different stories. Oxford and Glasgow both average £85.44, whilst Cambridge matches their occupancy at the same rate point.

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These university cities benefit from academic tourism, graduation ceremonies, and business travel, but the mid-range occupancy suggests hosts need to be strategic about capturing demand during peak periods whilst managing gaps during term breaks.

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Bristol and Newcastle: Mid-Market Performers

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Bristol achieves 46% occupancy at £69.00 per night, whilst Newcastle sits just behind at 45% occupancy and £68.00 nightly rate. Both cities demonstrate consistent but modest performance, indicating steady demand without the pricing power of top-tier destinations.

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For hosts in these markets, success likely depends on strong reviews, strategic pricing during events, and capturing both leisure and business travellers.

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London Faces Occupancy Challenges

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Surprisingly, London sits at just 44% occupancy despite commanding £92.40 average nightly rates, the second-highest amongst major cities. This gap between pricing power and occupancy suggests the capital's STR market may be oversupplied or facing regulatory headwinds.

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The numbers indicate that whilst London can support premium pricing when bookings occur, hosts are competing for a smaller share of available demand compared to previous years. Properties that aren't optimised for search visibility or lacking competitive amenities may struggle to maintain healthy booking calendars.

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Northern Cities Trail in Performance

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Liverpool, Leeds, and Manchester occupy the bottom tier with 42%, 42%, and 41% occupancy respectively. Nightly rates are correspondingly lower: Liverpool at £72.66, Leeds at £56.70, and Manchester bringing up the rear at £54.12.

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Manchester's performance is particularly noteworthy given its size and economic importance. The combination of low occupancy and the lowest nightly rate amongst major cities suggests either significant oversupply or that the city's STR market hasn't matured to the level of London or Edinburgh.

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What This Means for UK Hosts

The 2025 data reveals three distinct tiers in the UK short-term rental market:

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Premium performer (Edinburgh) where strong occupancy meets high nightly rates 

Mid-tier markets (university cities, Bristol, Newcastle, London) where either occupancy or rates lag behind the leader 

Challenging markets (Liverpool, Leeds, Manchester) where both occupancy and rates face pressure

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For hosts looking to maximise revenue, understanding your market's position is essential. Edinburgh's success demonstrates that scarcity, year-round appeal, and cultural significance can command both premium rates and strong occupancy. Meanwhile, markets with sub-45% occupancy may benefit from more aggressive pricing strategies, focusing on longer stays, or targeting specific events and seasons.

London's Unique Position

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London deserves special consideration. Whilst its occupancy lags, the £92.40 nightly rate shows the city still commands premium pricing when properties do book. This suggests successful London hosts are those who can maintain visibility, offer exceptional guest experiences, and potentially focus on longer-term bookings to offset lower occupancy rates.

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Looking Ahead

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As we progress through 2026, these benchmarks provide crucial context for hosts making decisions about their portfolios. Edinburgh's outsized performance suggests considering Scottish markets for expansion, whilst the struggles of major English cities may indicate opportunities for hosts who can differentiate their properties in crowded markets.

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For those managing properties in lower-occupancy markets, the data underscores the importance of dynamic pricing, strong online reviews, and strategic marketing during peak demand periods. In markets where you can't compete on occupancy alone, excellence in guest experience and operational efficiency becomes even more critical.

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Want To Access This Data For Yourself?

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