Interest Only vs Repayment Mortgage: Which Is Best?

Key Takeaways

Table of Contents

– The 10 Best Performing Areas For Serviced Accommodation in the UK

– Why You Need a Firm Grasp of Licensing, Management, Seasonality, and Property Sourcing

– Access FREE Serviced Accommodation Online Training

Fancy earning hotel-style income without the hotel-style headache? That’s the appeal of serviced accommodation. You let a property short-term, charge a premium for it, and dodge a lot of the red tape and massive overheads that come with running a traditional hotel.

The catch? The location is absolutely everything with this strategy. So where should you actually be looking to buy or lease?

Here are the best areas for serviced accommodation in the UK right now.

Manchester

Manchester keeps cropping up on every serious investor’s radar, and for good reason. The city has transformed from an industrial heartland into a genuine economic hub, and demand from business travellers and students has followed it there.

Property prices are below the national average, yet returns consistently punch above their weight. Ancoats, with its buzzing indie food scene and stylish warehouse conversions, is one to watch, as is Salford Quays, just on the doorstep of MediaCityUK.

Birmingham

Birmingham’s Big City Plan is hard to ignore. New developments are reshaping entire districts, drawing in professionals who want to live, work, and socialise without a long commute.

That sticky tenant demographic is exactly what serviced accommodation thrives on. Prime postcodes near the city centre are already outperforming the national average on revenue, and the momentum shows no signs of slowing down.

London

You simply can’t leave London off a list like this. Since it’s the world’s third most visited city, well-placed rental properties here rarely sit empty for long.

Yet even with tourist numbers booming, the actual supply of short-term rooms is shrinking, largely down to stricter local regulations.

That’s a huge green light for investors. Demand is moving towards professional short-term lets, while regulatory pressure quietly thins out the amateur competition. If you play by the rules and get your compliance right, London promises brilliant earnings.

Leeds

Leeds, one of the UK’s largest and fastest-growing cities, has a young, international population. It’s a massive powerhouse outside of London, boasting a thriving FinTech and HealthTech scene backed by five major universities.

That specific mix drives a reliable queue of business travellers, visiting academics, and contractors into the city week after week. This is exactly the kind of high-paying corporate audience you want for serviced accommodation.

Add a strong cultural calendar and a city committed to long-term regeneration, and Leeds stands out as one of the most bankable hotspots on this list.

Ready To Build Job Replacing Income With Property?

Edinburgh

Edinburgh is a fantastic hub for short-term lets, driven by a non-stop stream of holidaymakers and corporate visitors.

The Fringe Festival alone creates a seasonal spike most cities can only dream of. But Edinburgh is far from a one-hit wonder. Its blend of heritage, business, and tourist footfall keeps demand fairly consistent from January through December.

You do need to navigate Scotland’s strict short-term let licensing rules here. If you do things properly, the nightly rates in the capital are incredibly lucrative.

York

York is a bit of a dark horse on this list. It’s a gateway city, which means it draws in crowds all year round, not just during one busy season.

That constant flow of people translates into steady occupancy for serviced accommodation. In fact, returns here often completely outperform what you’d make from a standard buy-to-let in the same postcode.

If you’re after a reliable market rather than a flashy one, York deserves a proper look.

Liverpool

Liverpool’s affordability is its biggest selling point. Entry prices are friendlier than in Manchester or Birmingham, while rental demand keeps climbing thanks to a growing economy and a continuous churn of business and leisure guests.

For investors priced out of the bigger northern cities, Liverpool offers a way in without sacrificing much on yield.

Teesside

Teesside might not be the first name that comes to mind, but it should be on your shortlist. The region has become the focal point of the UK’s green industrial revolution, with major projects attracting thousands of specialist contractors into the area.

That influx is spilling into surrounding towns, and quality serviced accommodation is struggling to keep pace with demand. Early movers here stand to benefit before the rest of the market catches on.

The Lake District

Not every entry on this list is a city, and the Lake District proves serviced accommodation isn’t just an urban play. It remains one of the UK’s top travel destinations, with investors benefiting from higher nightly rates and strong seasonal demand.

The trade-off is that success depends heavily on professional management, so this one suits investors willing to bring in experienced operators rather than running things solo.

Nottingham

Nottingham is carved up perfectly for the “mid-stay” corporate clientele. Huge investment in bioscience and tech parks means it’s quietly pulling in highly paid experts and contractors who need a place to stay for weeks or months at a time.

This creates a sweet spot for short-term lets. You get a regular trickle of clinical researchers, academics, and professionals who want home comforts without the hassle of a rigid, long-term tenancy.

FREE Serviced Accommodation Online Training

Done right, the income potential from serviced accommodation is undeniable. However, you need a firm grasp of licensing, management, seasonality, and property sourcing. Getting any of those things wrong is an expensive lesson to learn on your own.

Discover how to spot these opportunities and more from the experts. Sign up for our free online serviced accommodation property training event!