Best Areas in Central London to Rent Out an Airbnb
Areas in Central London with the Best Short-Let Yields (Our Experience)
As Airbnb managers operating in Central London for most of a decade, we know there’s really no better place to invest than smack bang in the city. Central London remains one of the highest and strongest performing short-term rental markets in the UK – and even the world.
Premium nightly rates, paired with strong demand, make Central London the hub for year-round headline occupancies and strong annual rental yields.
But it’s more than great nightly rates and occupancy. Nearby attractions, transport links and good management all contribute to why central locations consistently generate the strongest returns. Here are the Central London neighbourhoods we’ve found to be among the best performers.
Overview
| Area | ADR | Occupancy | Monthly Revenue | Annual Revenue | Active Listings |
|---|---|---|---|---|---|
| Covent Garden | £355+ | 47-51% | £4,388-£7,858 | £52,656-£94,296 | 1,200+ |
| Soho & Leicester Square | £285-£343 | 75-78% | £4,100-£7,000 | £49,200-£84,000 | 1,500-2,500 |
| St James's | £350+ | 75-80% | £6,292 | £75,500 | 1,300 |
| Marylebone | £220-£450 | 70-85% | £7,083 | £85,000 | 2,700 |
| Holborn | £267 | 53-65% | £4,245-£5,207 | £50,944-£62,478 | 220 |
Covent Garden
- Premium daily rates of £355+
- Median occupancy of 47%-51%
- 1,200+ active Covent Garden Airbnb listings
Covent Garden is one of our favourite areas for Airbnb investment because demand rarely slows, helping owners achieve monthly revenues between £4,388 and £7,858.
Demand in the area can be explained by the Covent Garden Piazza, Royal Opera House, Seven Dials, Neal’s Yard and London’s famous West End, with theatres, restaurants and shopping, and its central location means guests are within walking distance of Leicester Square, Soho, Trafalgar Square, and the River Thames.
Airbnb management in Covent Garden.
Soho & Leicester Square
- Premium daily rates of £285-£343
- Median occupancy of 75%-78%
- 1,500 to 2,500 active Airbnb listings
The average monthly revenue in Soho & Leicester Square can easily range from £4,100 to £5,200. The top 10% of properties in the area can earn even more, around £7,000 per month during peak seasons. The figures show it’s a popular area for guests, thanks to its proximity to Carnaby Street, Chinatown, Piccadilly Circus, the capital’s famous theatres, and countless restaurants, bars, and entertainment venues.
In our experience, neighbourhoods like this tend to perform well, especially for short city breaks and among international visitors during prime school holiday periods, such as Christmas and major film premieres.
Airbnb management in Leicester Square.
St James’s
- Premium daily rates from £350+
- Median occupancy of 75-80%
- 1,300 active Airbnb listings
With proximity to Bond Street, Green Park, Hyde Park, Buckingham Palace, and St James’s Park, the St James area can generate annual revenues of up to £75,500, depending on the property’s size. Peak season runs from July through the summer months, and we’ve noticed that well-presented apartments in the area achieve some of the highest average daily rates and occupancies in the city.
Airbnb management in St James’s.
Marylebone
- Premium daily rates £220 to £450
- Median occupancy of around 70%-85%
- 2,700 active Airbnb listings
Guests are drawn to Marylebone for its proximity to Regent’s Park, Madame Tussauds, Baker Street, Harley Street, and Selfridges, and for offering a quieter alternative to busier tourist hotspots while remaining close to London’s biggest attractions and providing excellent transport links. This means hosts in the area can command higher nightly rates, earning an average annual revenue of £85,000 per listing.
Airbnb management in Marylebone.
Holborn
- Premium daily rates of £267
- Median occupancy of around 53%-65%
- 220 active Airbnb listings
Holborn is an underrated area for Airbnb investment in London, but we’ve consistently seen strong performance from properties here. Its prime location between the West End and the City attracts international tourists and business professionals, thanks to its proximity to the London School of Economics and King’s College London. Guests can also benefit from being within walking distance of the British Museum, Covent Garden and Bloomsbury.
Compare other areas in London
| Category | North London | West London | Central London | South London |
|---|---|---|---|---|
| Best For | Balanced, year-round returns | Premium and luxury investments | Maximising revenue | Value and long-term growth |
| Typical ADR | £180-£260 | £149-£400+ | £220-£450 | £175-£230 |
| Typical Occupancy | 51-78% | 65-80% | 47-85% | 58-75% |
| Typical Annual Revenue | £33,600-£70,200 | £39,000-£85,000 | £49,200-£94,296 | £40,000-£50,000 |
| Largest Airbnb Market | Camden (4,200 listings) | Mayfair (2,700 listings) | Marylebone (2,700 listings) | Brixton (2,460 listings) |
| Main Guest Types | Tourists, business travellers, students | Luxury tourists, business travellers | International tourists, city-break visitors | Leisure travellers, professionals, event-goers |
| Key Demand Drivers | Universities, transport hubs, entertainment | Museums, shopping, luxury attractions | West End, iconic landmarks, business districts | O2, Battersea Power Station, nightlife, excellent transport |
| Investment Style | Reliable all-round performer | High-value premium portfolio | Maximum earning potential | Lower entry costs with solid returns |
See more: North London, West London & South London.
Need Airbnb management in Central London? Choose Ovitzia!
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