Key Highlights

In an ever-evolving UK property market, landlords and investors are increasingly exploring short–term lets as a profitable alternative to traditional rental models. With the rise of platforms such as Airbnb and Booking.com, and the emergence of expert management services like MyPropertyHost, short-term lets are no longer just for holiday homes –  they represent a compelling investment strategy. 

What Are Short-Term Lets? 

Short-term lets, also known as holiday lets or serviced accommodation, involve renting out a property for a period ranging from a single night to several weeks or months. These arrangements differ fundamentally from standard long-term lets, typically known as Assured Shorthold Tenancies (ASTs), which typically involve tenants renting for a minimum of six months under a formal tenancy agreement. 

Often marketed on booking platforms or directly to corporate clients, short term lets can cater to tourists, business travellers, relocating professionals, and contractors. In cities like London, Edinburgh, and Manchester, demand remains robust year-round, especially with the rise of hybrid working and ‘bleisure’ travel. 

Short-Term Lets vs ASTs: The Yield Advantage 

The principal attraction of short-term lets is the potential for significantly higher yields compared to ASTs.  

While a long-term tenant might pay a fixed monthly rent of £1,500 under an AST, a short-term let could command nightly rates of £100–£200, depending on location, presentation, and seasonality. Even accounting for higher operational costs (cleaning, maintenance, utilities, booking fees), many landlords see 30–50% more income annually from well-run short-term lets. 

Furthermore, landlords retain greater flexibility. There is no need to wait out a six- or twelve-month contract to repossess a property. This is useful if planning a sale, refurbishment, or personal use.  

The Operational Challenge & The Role of Specialist Agents  

Running a short-term let can mean being far more involved than a standard tenancy. Properties must be kept in pristine condition, listings need regular optimisation, guest communication is time-sensitive, and local compliance requirements (such as planning permission, licensing, and health & safety) must be diligently managed. 

This is where specialist agents like MyPropertyHost come into play. 

Companies like MyPropertyHost offer end-to-end management services, including: 

• Professional photography and listing creation 

• Guest screening 

• Dynamic pricing and yield optimisation 

• Speedy guest communication 

• Housekeeping and maintenance coordination 

• Legal and regulatory guidance 

By outsourcing to a trusted partner, landlords can enjoy the financial benefits of short-term letting without the administrative burden. Additionally, these companies also provide access to longer corporate contracts, which can mean more assured returns and fewer void periods for investors who choose to go with this route. Lastly, experienced agents are often better positioned to navigate local restrictions or apply for appropriate planning, thereby removing the burden from investors for ensuring compliance while maximising returns. 

Regulatory Considerations  

While lucrative, short-term letting is not without regulatory oversight. In London, for instance, short-term rentals are capped at 90 nights per calendar year unless specific permissions are obtained. While other cities, such as Manchester & Leeds, have not introduced similar controls, it is essential for property investors to stay informed and work with agents who understand the local landscape and can offer compliant solutions. 

Is It Right for You? 

The model may not be ideal for every property or every investor. The key is to evaluate local demand, operational feasibility, and legal restrictions, ideally in consultation with a specialist agent. Short-term lets can work great for prime city centre locations, stylish and fully furnished properties, and investors flexible with pricing and seasonal availability. 

At NPG, investors can benefit from short lets on some of our properties, such as Quayside Residence in Manchester, and St. Joseph’s Place and The Vault in Leeds. With NPG’s exclusive serviced-let model or other approved models in place, investors can benefit with yields ranging from 9-18% with these short lets.

Conclusion

Short-term lets offer a powerful opportunity for UK property investors to increase yield, diversify risk, and maximise flexibility. When paired with companies that offer end-to-end management services, the model can deliver strong returns with minimal hassle, thereby transforming your properties into high-performing investments. 

As always, success lies in the details: the right property, in the right location, managed the right way.   

Book a free consultation with us today to start your journey of investing in off-plan UK property.