Serviced Accommodation
Furnished property let on a short-term, nightly or weekly basis (Airbnb / Booking.com style), earning materially more than a standard tenancy in the right location.
Typical ROI
2 to 3x single-let income
Timeline
1 to 4 months
Difficulty
Medium
Key metric
Yield
Strategy overview
- Acquire or lease a property in a high-demand short-let location
- Furnish and equip to a high, guest-ready standard
- List across the major booking platforms (OTAs)
- Manage bookings, pricing and turnovers, in-house or via an agency
Advantages
- High revenue potential versus a standard tenancy
- Flexible — can revert to a normal let if needed
- No long tenancy commitment; dynamic pricing captures demand peaks
- Benefits from tourism, business and relocation demand
Considerations
- Income is seasonal and volatile; running costs are higher
- Very hands-on: cleaning, guest comms, turnovers
- Regulation is tightening: the Furnished Holiday Lettings tax regime was abolished in April 2025; London's 90-night annual cap applies to whole-property lets; a national registration scheme and a new C5 short-term-let planning use class are rolling out across England (expected 2026, timing has slipped — councils will be able to designate control zones)
- Check mortgage lender consent, freeholder/lease terms, and business-rates vs council-tax position
Funding options
SA-friendly BTL or commercial mortgage
Standard finance with lender consent for short letting.
Use existing financeHoliday-let mortgage
Specialist product priced on short let income.
Built for short staysBridging finance
To acquire or refurb, then refinance.
Fund the worksRent-to-SA
Lease the property and operate it without ownership.
Lowest capital entryIdeal property profile
- Near tourist, business, hospital or event hubs
- City-centre or destination locations; 1 to 2 beds let strongly in cities
- Good transport links, parking and reliable fast Wi-Fi
- Lease, freehold and planning position all permit short-term letting (London: under 90 nights or with planning)