The best UK cities for serviced accommodation in 2026
The best city for serviced accommodation is not the one with the highest nightly rate. It is the one where rate, occupancy, purchase or rental cost and regulatory stability line up.
Here is how the main UK markets compare in 2026, based on the mix we operate and monitor.
Strong yield, manageable regulation
Liverpool: consistently high occupancy from football, events, cruise and stag or hen demand, with low entry costs. Nightly rates are modest but yields are among the best in the UK.
Manchester: deep and diversified demand across corporate, events and leisure, with mid-week contractor bookings supporting the calendar. Higher entry costs than Liverpool but stronger rates.
Newcastle and Sheffield: reliable event and hospital-adjacent demand, low competition in quality-managed stock, and simple regulation.
High rate, higher friction
London: the highest rates in the country, but the 90-night cap on whole-home short lets means you need a mid-term or corporate strategy alongside nightly stays. Best suited to operators who can run both.
Edinburgh: exceptional festival-period rates, but licensing plus a Short-Term Let Control Area make new entry difficult and slow. Existing licensed stock is valuable.
Birmingham and Glasgow: solid rate and demand, with growing competition in city-centre apartment stock. Differentiation on quality and reviews matters more here than elsewhere.
Underrated markets
Kent towns and coastal Medway: mixed leisure, contractor and relocation demand, longer average stays and lower turnover costs, with far less competition than the big cities.
St Helens, Warrington and similar commuter towns: low entry cost, steady contractor and insurance-housing demand, and stays of a week or more that keep operating costs down.
The general rule for 2026: markets with contractor and relocation demand are more resilient than pure tourist markets, because they book longer and care less about seasonality.
Frequently asked
Which UK city has the best serviced accommodation returns?
On yield, Liverpool and other strong regional cities generally beat London because entry costs are far lower while occupancy stays high. On absolute revenue per property, London and Edinburgh lead.
Is London still worth it for short lets?
Yes, but only with a strategy that respects the 90-night cap — usually nightly stays combined with corporate lets of 31 nights or more.
What demand should I look for in a new city?
Hospitals, universities, large employers, sports venues, conference space and ongoing construction or infrastructure projects. Those create weekday and off-season bookings that tourism alone does not.
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