Airbnb vs Long Let Rental Profitability (UK, 2026)

Used for yield calculation and Section 24 tax estimate.

Check local comparables on Rightmove’s Sold Prices / Zoopla for 2-3 recent lettings nearby.

Use AirDNA or check your postcode on Airbnb to see top-3 comparables. Be honest about occupancy — 55% is a reasonable "no evidence" baseline.

Critical for the 90-night cap and planning warnings.

Section 24 bites hardest at Higher (40%) and Additional (45%). Basic-rate landlords are largely unaffected.

The chart shows short-let net profit at every occupancy level with the long-let baseline. The breakeven reference line shows the occupancy you need to match long-let profit.

(1) Central London / Edinburgh / York / Bath — high nightly rates + strong year-round demand. (2) Primary residence under 90 nights — no planning needed. (3) Freehold house in tourism hotspot. (4) You're willing to self-manage or pay 15% management fee.

(1) Leasehold flat (lease likely prohibits short). (2) Provincial areas with low tourism. (3) You're a higher-rate taxpayer without a limited company. (4) You value predictable income and zero hospitality overhead.

From 2026 all English short-term lets require national registration (DCMS). From 2024 Scotland required short-term let licences (many councils use "control zones"). Wales is consulting on similar schemes. Regulation is tightening — factor a 10–15% operational risk into your short-let baseline.

Limited companies keep full mortgage interest deduction, pay 19–25% corporation tax and 8.75–39.35% dividend tax on withdrawal. For 3+ properties on higher-rate income it often beats personal ownership within 5 years. But transferring existing property triggers SDLT + CGT — always model with an accountant.

See HMO vs Single Let for a different yield-boost strategy, or Rent a Room Scheme for tax-free lodger income from your own home.