The end of the year is a good moment to take a calm and realistic look at the market. The results of 2025 showed that London’s short term rental sector not only remained stable but became more mature and predictable. The strongest results were achieved by owners who focused not on maximum occupancy, but on quality, strategy and well structured management.
Despite regulatory changes, increased competition and evolving guest expectations, the market continued to develop. It became clear that stable income today is achieved by properties that are managed systematically and with a long term perspective in mind.
Key outcomes of 2025
According to industry analytics and tourism data, average revenue from short term rental properties in London increased by 8–10% compared to 2024. Importantly, this growth was driven not by a higher number of bookings, but by an increase in the average nightly rate.
The most noticeable price growth was seen in central London, including Mayfair, Westminster and Kensington. These areas continued to show stable demand even as rates increased, once again confirming the importance of location and property quality.
The most profitable periods remained summer and early autumn, when a large share of annual income is generated. The average length of stay settled at around five nights, which improved operational efficiency and reduced wear and tear on properties.
Guest behaviour
In 2025, changes in guest behaviour became more apparent. International guests booked less frequently but stayed longer, increasing revenue per booking. In central London, overseas visitors continued to represent the majority of demand, while longer stays made income more stable and predictable for property owners.
Guests increasingly choose not just a place to sleep, but a comfortable living space, raising expectations around service quality, property condition and communication.
What this means for property owners
- Maximising occupancy is no longer the main objective
- Property quality, location and management directly impact income
- Premium homes benefit from stability rather than constant guest turnover
- Revenue growth is increasingly driven by smart pricing, not volume
- Professional oversight and a structured approach have become essential
Year end conclusion
2025 confirmed that short term letting in London remains attractive for owners who view their property as a long term asset, rather than a tool for short term occupancy. The market increasingly rewards thoughtful decisions, consistent quality and clear management strategies.
In this context, Pass the Keys Mayfair plays an important role by helping owners with pricing strategy, on the ground property oversight, guest management and day to day operations. This approach supports stable income, reduces risk and helps protect the long term value of the property.