Short‑term lets: No longer just for holidays

For many years, short‑term lets were associated with holiday cottages, coastal apartments and rural getaways. The sector was closely tied to tourism, seasonality and peak summer demand. That picture is now outdated. 

Today’s short‑term let market has evolved into something far broader and, arguably, far more resilient. Across the UK’s major towns and cities, serviced accommodation is playing a vital role in supporting the modern workforce. From mid‑week commuters and contract workers to professionals working flexibly across multiple locations, demand is increasingly coming from people who need high‑quality, short‑stay accommodation near city centres rather than a seaside base for a fortnight in August. 

This shift reflects wider changes in how and where people work. Hybrid working hasn’t reduced the importance of cities, instead, it’s changed how people access them. Many professionals now travel into cities for two or three days at a time, combining office attendance with remote working elsewhere. For these commuters, hotels can feel impersonal and expensive, while traditional buy to let properties don’t offer the flexibility required. Well‑run serviced accommodation bridges that gap, providing a home‑from‑home experience with the convenience and flexibility modern workers expect. 

A maturing market with professional intent 

As the customer base has changed, so too has the investor profile. Short‑term letting in city centres is no longer driven by accidental landlords or part-time investors. It’s increasingly being defined by professional landlords who understand local demand, operate at scale and deliver consistently high standards of accommodation and management. 

This is a maturing market. Properties are designed with functionality in mind, offering reliable Wi‑Fi, dedicated workspaces and easy access to transport hubs. Occupancy patterns may not follow traditional tourist seasons, but they’re often steadier throughout the year, supported by business travel, project‑based work and corporate bookings. 

Crucially, this evolution has made short‑term lets a more mainstream consideration for investors. The sector now sits alongside other residential strategies as part of a diversified portfolio, rather than being viewed as a niche or higher‑risk outlier.

Understanding the funding challenge 

Despite this evolution, funding has not always kept pace with the reality of the market. Many lenders still view short‑term letting through the narrow lens of holiday accommodation, applying assumptions that don’t reflect urban serviced apartments or city‑based demand. This can make it harder for experienced landlords to secure finance that aligns with how they actually operate. 

At CHL Mortgages, we see the market differently. We recognise that short‑term lets are supporting economic mobility, labour flexibility and the ongoing vitality of city centres. Our short‑term let proposition is designed with this modern context in mind, supporting professional landlords who operate responsibly and have a clear understanding of their target market. 

That means taking a pragmatic view of income, assessing properties on their individual merits and recognising the differing demand drivers between coastal, rural and urban locations. It also means offering products that provide flexibility, so investors can adapt as market conditions and working patterns continue to evolve. 

Looking ahead 

The shift towards city‑based serviced accommodation shows no sign of slowing. As employers continue to balance flexibility with in‑person collaboration, the need for short‑stay, high‑quality accommodation near major employment areas will remain strong. For investors who understand this demand and structure their portfolios accordingly, short‑term lets can offer a compelling long‑term opportunity. 

The market has moved on from the idea that short‑term letting is simply about holidays. It is now about supporting how people live and work today. Lenders who understand that shift, and design propositions around it, will be best placed to support the next phase of growth in this evolving sector.

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