The income comparison: what the data shows

Based on current Houst performance data, here is what a professionally managed two-bedroom property earns under each model in key UK cities:

Manchester:

• Short let: approximately £195/night at 70% occupancy (~£4,100/month gross)
• Long let: approximately £1,400-1,700/month for a furnished two-bedroom in a central postcode
• Gross advantage for short let: approximately 2.5-3x

Edinburgh:

• Short let: approximately £7,400/month gross at 75% occupancy
• Long let: approximately £1,800-2,200/month for a central furnished two-bedroom
• Gross advantage for short let: approximately 3-4x (driven by Festival season premium)

Brighton:

• Short let: approximately £210/night at 70% occupancy (~£4,400/month gross)
• Long let: approximately £1,600-2,000/month for a furnished two-bedroom near the seafront
• Gross advantage for short let: approximately 2-2.5x

London (90-day cap applies):

• Short let: approximately £182/night at 81.5% across 90 nights, plus mid-term income for the remainder. Average annual net revenue approximately £38,148 after platform fees
• Long let: approximately £2,800-3,500/month for a central furnished two-bedroom
• Net annual advantage: depends on mid-term income achieved in the non-Airbnb months

For city-specific income breakdowns, see the guides for Manchester, Edinburgh, Brighton and London.

The cost comparison: what short lets actually cost to run

Gross income is only half the story. Short-term letting carries significantly higher operating costs than a standard tenancy.

Short let costs (annual, typical two-bedroom):

• Platform fee (Airbnb): approximately 3% of gross booking revenue
• Professional management: 14-20% of nightly income
• Cleaning and linen: £40-80 per turnover, typically 2-4 turnovers per week at high occupancy
• Higher maintenance and wear and tear on furnishings, appliances and fixtures
• Specialist short-let insurance: typically £800-1,500/year
• Safety certifications: gas safety (annual), EICR (5-yearly), smoke and CO alarms

Long let costs (annual, typical two-bedroom):

• Standard landlord insurance: typically £400-700/year
• Letting agent fee: typically 10-15% of monthly rent if using an agent
• Lower maintenance frequency with a single long-term tenant
• Void periods: typically 2-4 weeks between tenancies

At Manchester short-let rates, a two-bedroom earning ~£49,200 gross per year would net approximately £33,000-38,000 after platform fees, professional management and cleaning. Still significantly ahead of the long-let gross of £17,000-20,400.

When short let wins — and when it doesn't

Short let wins when:

• The property is in a location with genuine short-let demand (tourism, corporate, events)
• The gross short-let yield at realistic occupancy covers the higher cost base and still outperforms long let net
• The owner self-manages effectively or uses professional management that earns its fee through yield uplift
• There is no restrictive night cap, or the hybrid model compensates for it

Long let wins when:

• The property is in a low-demand short-let area where occupancy would be too low to justify the costs
• The owner wants minimal involvement and a predictable monthly income
• The lease or ownership structure restricts short-term letting
• The property needs significant investment to reach short-let furnishing standard

The break-even point. For a typical UK property, short let outperforms long let on net income if occupancy stays above approximately 55-60%. Below that level, the fixed cost base (cleaning, insurance, certifications) erodes the income advantage. Properties in secondary locations often struggle to sustain the occupancy needed to clear this bar consistently.

The 90-day cap: why London is different

For London property owners, the comparison is more complex. The 90-night cap on whole-property short-term lets means you cannot run a full-year Airbnb calendar on an entire property without planning permission.

The most effective London strategy is the hybrid model: concentrate the 90 Airbnb nights in the high-demand period (April to September), capturing peak summer rates and the events calendar. Fill the remaining months with 28-day minimum mid-term bookings targeting contractors, corporate relocators and NHS workers. These mid-term bookings do not count toward the 90-night cap.

On this basis, a well-managed London two-bedroom can achieve approximately £38,000 net annual income — broadly comparable to the long-let gross of approximately £33,600-42,000 in a central location, though the short-let figure is net after platform fees while the long-let figure is before agent costs and voids.

For owners in Edinburgh, Dublin and Paris, similar city-specific night limits or licensing requirements affect the calculation. See the Airbnb rules overview for all cities for a market-by-market breakdown.

How to model your specific property

The right answer depends on your property, location and management approach. Here is the framework:

Step 1: Establish your realistic short-let occupancy. Use Houst's ADR data for your area as a baseline, then adjust for your specific postcode and property quality. Model income at 60% occupancy as a downside case, not just the headline 70-75%.

Step 2: Calculate net short-let income. Deduct platform fees (3%), management (14-20% if applicable), cleaning (based on realistic turnover frequency) and insurance uplift. This is your net short-let income.

Step 3: Establish your long-let comparator. Find what a similar furnished property rents for in your area on Rightmove or SpareRoom. Deduct letting agent fees and an allowance for voids and maintenance.

Step 4: Compare and decide. If net short-let income exceeds long-let net by 20% or more, short let is the clear winner. If the gap is under 20%, factor in the higher management time and operational complexity before committing.

Use the Houst short-let vs long-let calculator to run this comparison for your specific property and location in under two minutes.

Frequently asked questions

Is short-term letting more profitable than long-term letting in the UK?

In most major UK cities with strong short-let demand, yes. Gross short-let income typically runs 1.5-3x the equivalent long-let income for a professionally managed property. After operating costs the advantage is smaller but still significant in cities like Manchester, Edinburgh and Brighton. In London, the 90-night cap requires a hybrid model to achieve the full annual potential.

How much more does Airbnb earn than a long-term let?

Based on Houst data, a two-bedroom in Manchester earns approximately 2.5-3x the long-let gross. Edinburgh earns 3-4x. The multiple is lower in London due to the night cap but absolute income can still be higher with a hybrid model. These are gross comparisons before deducting short-let operating costs.

What are the hidden costs of short-term letting?

The main costs are platform fees (3%), management fees (14-20% of nightly income), cleaning between each guest stay, higher wear and tear on furnishings, specialist short-let insurance, and annual safety certifications. Together these typically reduce gross short-let income by 30-40%.

Is short-term letting worth it for a UK property outside London?

In cities with strong demand and no night cap (Manchester, Edinburgh, Brighton), yes — for well-located properties that can sustain occupancy above 55-60%. In lower-demand or secondary locations the advantage narrows and may not justify the higher cost and management burden.

What is the short-let vs long-let calculator?

The Houst short-let vs long-let calculator estimates net annual income from each letting model for a specific property, using real ADR and occupancy data from 27 cities. It gives a side-by-side comparison in under two minutes.