Serviced accommodation has become one of the fastest-growing sectors within the UK property market, offering investors a lucrative alternative to traditional buy-to-let models. With increasing demand from business travellers, tourists, and relocating professionals, serviced apartments are delivering higher yields and shorter void periods compared to standard rentals. In 2025, this trend shows no sign of slowing. Fraser Bond, a trusted name in UK property investment, offers expert guidance to help investors enter and succeed in the booming serviced accommodation sector.
Serviced accommodation typically refers to fully furnished apartments available for short- or medium-term stays, offering hotel-like amenities such as cleaning services, Wi-Fi, and concierge support. They bridge the gap between hotels and traditional rentals, providing flexibility, comfort, and value for money to guests while offering excellent revenue potential for owners.
Serviced accommodation often achieves 30–50% higher rental income than standard Assured Shorthold Tenancy (AST) models. By letting properties on a nightly or weekly basis, investors can significantly boost cash flow, especially in high-demand areas.
Demand comes from:
Business travellers requiring short-term corporate stays
Tourists seeking flexible, home-like accommodation
Medical tourists and relocating professionals
Students needing short-term housing before university term starts
Cities like London, Manchester, Birmingham, and Edinburgh are witnessing strong year-round occupancy rates.
Owners have the flexibility to use the property personally at intervals and adjust pricing dynamically based on demand, maximising income during peak seasons.
The rise in domestic travel, fuelled by cost-conscious tourists and changing travel habits post-pandemic, has further boosted demand for quality serviced accommodation across the UK.
London: Central areas such as Canary Wharf, Southbank, and Shoreditch are particularly popular among business and leisure travellers.
Manchester: A major business and cultural hub with strong corporate demand.
Birmingham: Growing appeal due to large-scale regeneration and hosting of international events.
Edinburgh: Year-round tourism ensures consistent demand for short stays.
Glasgow and Liverpool: Emerging markets with attractive entry prices and growing visitor numbers.
Certain local councils impose restrictions on short-term lettings (such as the 90-day rule in London). Investors must ensure compliance with local planning laws and licensing requirements.
Serviced accommodation requires active management, including guest communication, housekeeping, maintenance, and dynamic pricing. Many investors partner with specialist management companies to handle day-to-day operations.
Traditional buy-to-let mortgages may not apply. Investors should seek lenders offering specific serviced accommodation mortgages or flexible commercial lending solutions.
Properties must be fully furnished to a high standard, providing hotel-quality amenities to attract guests and maximise positive reviews.
Fraser Bond offers a full range of services for investors considering serviced accommodation, including:
Identifying high-demand locations and suitable properties
Access to off-market and exclusive investment opportunities
Guidance on regulatory compliance and licensing
Introduction to specialist mortgage providers and management companies
Strategic advice on optimising occupancy rates and revenue
Our expert team ensures that investors can confidently navigate the complexities of the serviced accommodation sector and maximise their returns.
Serviced accommodation investment in the UK presents a high-yield, flexible, and fast-growing opportunity for forward-thinking property investors in 2025. With demand showing no signs of slowing and with Fraser Bond’s expert guidance, investors can successfully enter this dynamic market and build a robust, income-generating portfolio.
