MARKET UPDATE
UK property market update for september
October 06 , 2025 • Author: Richard Bradstock
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Thinking of short lets as a way to increase ROI on your property investments? Here’s our guide to how they work and the best locations to invest in.
Short lets were expanding rapidly until the pandemic hit and booking platforms like Airbnb saw bookings decline by 70%. Now, with higher lending costs and greater regulatory and taxation challenges, more landlords are switching from traditional style longer lets to short legs, tempted by the higher yields and greater flexibility. The latter an especial attraction for overseas property investors who are looking to get some personal use from their properties.
What Are Short Lets?
Short lets are rental arrangements that run for anything from a few nights up to six months. They’re often furnished and include utilities, making them a flexible option for tenants such as business travellers, relocating professionals or tourists. In many cases, short lets overlap with the serviced accommodation and holiday let market.
How to Manage Short Lets
Managing short lets requires more active involvement than traditional buy-to-let. Key considerations include:
1
Furnishing & Presentation
Properties must be fully furnished and well-presented, ideally with high-quality photos to stand out online.
2
Marketing Platforms
Short lets are often advertised on portals like Airbnb, Booking.com, and Vrbo, as well as through local letting agents who specialise in corporate stays.
3
Guest Communication
Fast responses and good communication are crucial for securing bookings and maintaining positive reviews.
4
Turnover Management
Expect frequent changeovers, meaning regular cleaning, laundry, and maintenance.
5
Compliance
Short lets still fall under landlord responsibilities, including gas safety, electrical checks and fire safety. Some councils (such as in London) impose restrictions, limiting short lets to 90 nights per year unless you have planning permission.
Investors often use professional management companies to handle these aspects, trading a portion of income for convenience and consistency.
Pros of Short Lets
Higher Rental Yields
Nightly rates can often exceed the equivalent monthly rent of a long-term let, especially in city centres or tourist hotspots.
Flexibility
You can use the property yourself between bookings, making it ideal for second homes or pied-à-terres.
Tenant Variety
Attracts business travellers, holidaymakers, and professionals on short contracts, reducing reliance on long-term tenants.
cons of Short Lets
Active Management
Higher turnover means more time, admin, and operational costs.
Seasonal Demand
Bookings can fluctuate, leaving void periods outside of peak seasons.
Regulatory Risks
Local councils are tightening restrictions in some areas, especially where short lets affect housing supply. In London, there are particular concerns. Mortgage lenders are also reacting; there are trials in some tourist-heavy areas (e.g. parts of Norfolk and Yorkshire) where certain lenders are refusing new “holiday-let” mortgages.
Higher Running Costs
Furniture, utilities, cleaning, and guest services all eat into profit margins.
Is It Right for You?
Short lets can deliver strong returns but aren’t a passive investment strategy. They suit investors who:
Own properties in high-demand areas (tourism hotspots or city centres).
Are comfortable with active management (or willing to pay for a management service).
Want flexibility over how the property is used.
For others, a traditional buy-to-let might be more straightforward and predictable.
Brighton & Hove a clear stand-out winner: High opportunity year-round with medium risk.
1
Year-Round Appeal
Brighton & Hove stands out as a clear leader in the short-let market for its year-round demand which is made up not only from tourists, but shorter-term tenants like digital nomads who come to work in the city’s thriving tech-sector. It does not suffer from a seasonal shift which can blight rental properties in the South West of England. Instead, Brighton’s reputation as a cosmopolitan city cements its year-round appeal.
2
Accessibility
Brighton is under an hour from London Victoria and London Bridge, plus enjoys easy access to Gatwick Airport. This makes it attractive for weekend breaks and business travellers and crucial for last-minute bookings; people can just hop on a train Friday after work.
3
Rental Yields & Occupancy
Brighton consistently delivers high occupancy rates and strong nightly rates due to demand diversity. Smaller properties (1–2 bed flats) can perform as well as large houses because of couples and business travellers. Yields are often higher once you adjust for voids.
4
Market Liquidity & Exit Strategy
Brighton properties have strong capital appreciation potential due to ongoing London commuter demand and desirability as a lifestyle location. If regulations tightened on short lets, you could still let to students, professionals or sell to a wide buyer pool.
5
Regulation & Local Attitudes
There is some noise about restricting short-lets, but not yet as aggressive as Edinburgh or parts of London. Brighton has a long tradition of B&Bs, guest houses and student rentals, so “holiday accommodation” isn’t unusual.
The best locations for short let property
UK SHORT-LET MARKET GEOGRAPHIC ASSESSMENT
| Area | Opportunity | Regulatory risk | Why |
|---|---|---|---|
| Central London (inner boroughs) | High | High | Very strong demand (business + leisure); 90-night rule applies; borough-level enforcement and licensing pressure. |
| Edinburgh | High | High | Strong year-round tourism and events (Fringe); established short-let licensing and upcoming tourist tax. |
| South West Coast (Cornwall, Devon) | High (seasonal) | Medium | Huge staycation demand in peak season; supply clustered in South West; some local scrutiny but less formal national control than Scotland. |
| Isle of Skye / Scottish Highlands | High (seasonal) | High | Outstanding demand for nature escapes but subject to Scottish licensing and local control zones (Highland Council control areas). |
| Bath / Cotswolds / Historic small cities | Medium-High | Medium | Heritage tourism, consistent demand; local planning concerns in conservation areas may limit new short lets. |
| Manchester / Liverpool / Birmingham (big regional cities) | Medium-High | Low-Medium | Mixed business & leisure demand giving good weekday occupancy; less aggressive short-let enforcement than capital or Scotland. |
| Brighton & Hove | High | Medium | Strong coastal city demand and high rankings in tourism reports; local councils monitoring impact on housing supply. |
| North Norfolk & parts of North Yorkshire | Medium | High | High tourist demand but lenders (e.g., Leeds Building Society) trialled restricting new holiday-let mortgages to protect local housing supply. |
| University towns (Oxford, Cambridge) | Medium | Medium | Regular short-term demand (parents, academics, visiting students) but more seasonal and subject to local rules. |
| Lake District / National Parks | High (seasonal) | Medium-High | Strong staycation demand but local planning and conservation rules plus community concerns can lead to restrictions. |
Brighton Case Study, based on short-term let income
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About the author
RPA’s founder, Richard has worked in residential development investment for 20 years and oversees the general running of the business ensuring the RPA Group retains true to its founding principles. Over his career Richard has built an incredible network of international property investors and like-minded industry professionals.
Founder & Managing Director
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