Where Should You Invest in London Serviced Accommodation?

London is one of the world’s most visited cities, attracting around 21 million international visits in 2024 and generating approximately £17 billion in visitor spending. Demand for visitor accommodation has recovered beyond pre-pandemic levels, with total visitor nights in the capital rising from roughly 146 million in 2019 to 154 million in 2024

For property owners and investors, this sustained demand makes location one of the most important factors in the success of a serviced accommodation strategy.

At Dwellers Delight, we manage properties across London and help owners evaluate which boroughs and neighbourhoods best suit their assets, objectives and risk profile.

This guide outlines the strongest London boroughs for serviced accommodation in 2026, explains what drives demand in each area and highlights key regulatory and operational considerations.

Important: This article provides general information for property owners and is not legal, tax or financial advice. Planning rules, licensing and tax treatment can vary by borough and property type. Always confirm your position with the relevant local authority and qualified adviser.

 

 

How to Choose the Right Borough

The “best” borough depends on the property and the owner’s goals. Important factors include:

• Primary demand source: business travel, tourism, relocation, medical, education or events.
• Transport connectivity: Underground, rail, bus and airport links.
• Property type: apartment, house, studio, one-bed or multi-bed.
• Price point: budget, mid-market or premium.
• Regulatory environment: 90-night rule, planning constraints, Article 4 directions and local enforcement.
• Competition: number and quality of hotels and serviced apartments.
• Operational complexity: cleaning, access, parking, building restrictions.
• Owner objectives: maximum revenue, stable occupancy, long-term capital growth or flexible personal use.

A property that performs well as short-term accommodation in one borough may be better suited to medium-term or long-term letting in another.

Westminster

Westminster is one of London’s most important boroughs for serviced accommodation. It includes areas such as Mayfair, St James’s, Victoria, Pimlico, Paddington, Marylebone, Fitzrovia and parts of the West End.

Demand drivers

• Government, diplomatic and political activity.
• Major corporate headquarters and professional services.
• West End theatres, restaurants and entertainment.
• High-end shopping in Mayfair and surrounding areas.
• International tourism centred on landmarks such as Buckingham Palace, Westminster Abbey and Trafalgar Square.
• Major transport hubs including Victoria, Paddington and Marylebone.

Guest profile

• Senior business travellers and executives.
• International visitors.
• Theatre and leisure guests.
• Diplomatic and government-related visitors.
• Relocating professionals seeking central addresses.

Operational considerations

Westminster has a high concentration of hotels and serviced apartments, which means strong competition but also deep, consistent demand. Properties must be well presented and professionally managed to stand out.

The 90-night rule applies across Greater London, including Westminster, for whole-property short-term lets without planning permission.

Suitability

Westminster is particularly suitable for:

• Premium serviced apartments.
• Properties near major transport hubs.
• Homes targeting business and international leisure demand.
• Owners comfortable with a competitive, high-activity market.

Kensington and Chelsea

Kensington and Chelsea is known for its elegant streets, museums, parks and affluent residential character. It includes areas such as Kensington, Chelsea, South Kensington, Knightsbridge and Notting Hill.

Demand drivers

• World-class museums including the V&A, Natural History Museum and Science Museum.
• Hyde Park and Kensington Gardens.
• High-end shopping in Knightsbridge and King’s Road.
• International tourism and luxury travel.
• Proximity to central business districts.
• Strong transport links via multiple Underground lines.

Guest profile

• Affluent leisure travellers.
• Families visiting museums and parks.
• International tourists.
• Corporate guests seeking refined neighbourhoods.
• Relocating professionals and families.

Operational considerations

This borough attracts guests who expect high-quality interiors, excellent cleanliness and a calm environment. Noise management and neighbour relations are important in residential streets.

As with all London boroughs, the 90-night cap applies to whole-property short-term lets unless planning permission is obtained.

Suitability

Kensington and Chelsea is well suited to:

• Mid- to high-end serviced apartments.
• Family-friendly properties with multiple bedrooms.
• Homes near museums, parks and transport.
• Owners targeting quality over maximum turnover.

Camden

Camden includes areas such as Bloomsbury, King’s Cross, Euston, Hampstead, Primrose Hill and parts of Regent’s Park. It is a major hub for business, education, culture and transport.

Demand drivers

• King’s Cross and Euston as major rail and Underground hubs.
• Proximity to the City of London and West End.
• Universities, hospitals and research institutions.
• Cultural attractions including the British Museum, Regent’s Park and Camden Market.
• Strong corporate and professional demand.

Guest profile

• Business travellers working in the City, West End or knowledge sectors.
• Academic and medical visitors.
• Tourists exploring central attractions.
• Relocating professionals and families.

Operational considerations

Camden combines busy transport corridors with quiet residential streets. Properties near King’s Cross and Euston can attract strong business demand, while those in Hampstead and Primrose Hill may appeal to families and longer-stay guests.

The 90-night rule applies across the borough for whole-property short-term lets.

Suitability

Camden is suitable for:

• Serviced apartments near King’s Cross and Euston.
• Properties targeting business and academic visitors.
• Family-friendly homes in Hampstead and surrounding areas.
• Owners seeking a balance between business and leisure demand.

City of London

The City of London is the capital’s historic and financial core. It is a compact borough dominated by offices, financial institutions, professional services and cultural landmarks.

Demand drivers

• Global financial and professional services firms.
• Corporate meetings, conferences and projects.
• Historic attractions such as St Paul’s Cathedral, the Tower of London and the Barbican.
• Excellent transport connections via multiple Underground and rail stations.

Guest profile

• Senior business travellers and executives.
• Corporate teams and project groups.
• International finance and professional services visitors.
• Weekend leisure guests exploring the City and nearby attractions.

Operational considerations

Weekday demand is typically stronger than weekend demand in parts of the City, although leisure and events can support weekend occupancy. The borough has a relatively small number of residential properties compared with other central areas.

The 90-night rule applies in the City of London as part of Greater London.

Suitability

The City of London is suitable for:

• Serviced apartments targeting corporate and finance demand.
• Properties near major office clusters and transport hubs.
• Owners focused on weekday business travel.
• Buildings that permit short-term or serviced use.

Tower Hamlets and Canary Wharf

Tower Hamlets includes Canary Wharf, one of London’s principal business districts, as well as areas such as Whitechapel, Stepney and parts of the Docklands.

Demand drivers

• Canary Wharf as a major financial and business hub.
• Large corporate occupiers including banks, professional services and technology firms.
• Ongoing regeneration and mixed-use development.
• Strong transport links via the Jubilee line, Elizabeth line, DLR and upcoming projects.
• Growing residential and leisure offer in the Docklands.

Recent developments include major office-to-residential and mixed-use schemes in Canary Wharf, with new build-to-rent, co-living and serviced accommodation components. Large corporate commitments, such as PwC’s planned move to One Eden and JPMorgan’s expansion, are expected to sustain business activity in the area.

Guest profile

• Corporate travellers and project teams.
• Finance and professional services visitors.
• Relocating employees.
• Medium-term corporate stays.

Operational considerations

Canary Wharf is predominantly a business district, so weekday demand can be stronger than weekend demand in some parts of the borough. However, ongoing residential and leisure development is helping to create a more balanced profile.

The 90-night rule applies across Tower Hamlets as part of Greater London.

Suitability

Tower Hamlets and Canary Wharf are suitable for:

• Serviced apartments targeting corporate and finance demand.
• Properties near Canary Wharf, the Elizabeth line and DLR.
• Medium-term corporate lets and project-based accommodation.
• Owners seeking exposure to a major business district with ongoing investment.

Southwark and Lambeth

Southwark and Lambeth include areas such as London Bridge, Borough, Waterloo, South Bank, Bermondsey and Vauxhall. These boroughs combine business, culture, tourism and residential neighbourhoods.

Demand drivers

• Proximity to the City and West End.
• South Bank cultural venues, theatres and restaurants.
• London Bridge, Borough Market and Waterloo as major transport hubs.
• Attractions such as the Tate Modern, Shakespeare’s Globe and the London Eye.
• Growing corporate presence in London Bridge and surrounding areas.

Guest profile

• Business travellers working in the City and South Bank.
• Tourists visiting cultural and riverside attractions.
• Leisure guests attending theatres and events.
• Relocating professionals.

Operational considerations

These boroughs offer a mix of busy commercial areas and quieter residential streets. Properties near London Bridge and Waterloo can attract strong business and leisure demand, while those in more residential parts may suit families and longer stays.

The 90-night cap applies across both boroughs.

Suitability

Southwark and Lambeth are suitable for:

• Serviced apartments near London Bridge, Borough and Waterloo.
• Properties targeting both business and leisure demand.
• Homes close to cultural venues and transport hubs.
• Owners seeking a central but diverse location.

Islington and Hackney

Islington and Hackney include areas such as Angel, Shoreditch, Dalston, Highbury and parts of East London’s creative and technology corridor.

Demand drivers

• Technology, media and creative industries.
• Shoreditch and Old Street as innovation and start-up hubs.
• Restaurants, bars, markets and cultural venues.
• Proximity to the City and West End.
• Strong appeal to younger professionals and international visitors.

Guest profile

• Technology and creative-sector business travellers.
• Leisure guests exploring East London.
• Relocating professionals.
• Visitors attending events and cultural activities.

Operational considerations

These boroughs can be more neighbourhood-focused, with a mix of residential streets and busy commercial areas. Noise, parking and neighbour relations should be carefully managed.

The 90-night rule applies across Islington and Hackney as part of Greater London.

Suitability

Islington and Hackney are suitable for:

• Serviced apartments targeting tech and creative industries.
• Properties near Shoreditch, Angel and major transport links.
• Mid-market to upper-mid-market accommodation.
• Owners comfortable with a vibrant, evolving area.

Hammersmith and Fulham, Wandsworth and Richmond

These south-west and west London boroughs include areas such as Hammersmith, Fulham, Putney, Richmond and Kew.

Demand drivers

• Corporate offices and business parks.
• Proximity to Heathrow and west London transport corridors.
• Family-friendly neighbourhoods, parks and riverside areas.
• Schools, hospitals and professional services.
• Leisure attractions including Richmond Park and Kew Gardens.

Guest profile

• Business travellers working in west London.
• Families visiting schools or relocating.
• Leisure guests exploring parks and riverside areas.
• International visitors seeking a quieter base.

Operational considerations

These boroughs are more residential than central London, which can make them suitable for families and longer stays. They may be less dependent on tourism and more influenced by corporate and relocation demand.

The 90-night rule applies across these boroughs as part of Greater London.

Suitability

Hammersmith and Fulham, Wandsworth and Richmond are suitable for:

• Family-friendly serviced accommodation.
• Properties near business parks and transport links.
• Medium-term relocation stays.
• Owners seeking a more residential environment.

Regulatory Landscape Across London Boroughs

All 32 London boroughs plus the City of London are subject to the same underlying 90-night rule for whole-property short-term lets under the Deregulation Act 2015.

Key points for owners:

• An entire home in Greater London can generally be let short-term for up to 90 nights per calendar year without planning permission, provided certain conditions are met.
• Exceeding 90 nights without appropriate planning consent may constitute a breach of planning control and can lead to enforcement action and significant fines.
• Platforms such as Airbnb automatically cap whole-home listings at 90 nights unless the host can demonstrate planning permission for additional short-term use.
• Room-by-room letting while the host remains resident may be treated differently, but owners should still review mortgage, lease, insurance and safety obligations.

Beyond the 90-night rule, boroughs may differ in:

• Local enforcement priorities.
• Attitudes to short-term lets in specific streets or buildings.
• Article 4 directions affecting change of use.
• Lease and freeholder restrictions in particular developments.
• Building-specific rules on short-term occupation.

Owners should not assume that what is possible in one borough or building is automatically acceptable in another.

Business Travel and Tourism Trends

London remains the UK’s leading destination for both business travel and tourism. The 2025 UK business travel survey highlights continued corporate travel activity across domestic and international markets.

Tourism data shows that London received approximately 21 million international visits in 2024, accounting for more than half of all international visits to the UK. Domestic visitor nights in London have risen sharply, contributing to overall growth in accommodation demand.

Borough-level data indicates significant variation in the distribution of hotel rooms and short-term listings across London. Westminster, Kensington and Chelsea, Camden, Tower Hamlets and Southwark are among the boroughs with substantial visitor accommodation capacity.

For serviced accommodation, this means:

• Central business and tourism boroughs continue to attract strong demand.
• Location and property type remain critical to performance.
• Professional management and compliance are increasingly important as regulation evolves.

Matching Borough to Property and Strategy

The most successful serviced accommodation strategies align the borough with the property’s characteristics and the owner’s objectives.

Owners should also consider whether a property is better suited to:

• Short-term guest accommodation.
• Medium-term corporate or relocation stays.
• Long-term residential letting under the Renters’ Rights Act.
• A blended strategy using different periods of availability.

Why Borough Selection Matters for Dwellers Delight

At Dwellers Delight, we do not treat all London properties as interchangeable. We assess each home according to:

• Its exact location and neighbourhood.
• Transport links and nearby amenities.
• Building rules and lease restrictions.
• Local demand patterns.
• Regulatory considerations.
• The owner’s financial and personal objectives.

This allows us to recommend a strategy that balances revenue potential, operational complexity and risk.

In some cases, a property may perform better as medium-term corporate accommodation rather than short-term holiday lets. In others, a specific borough may offer more stable demand or fewer regulatory constraints.

Request a Borough-Specific Forecast

If you own a property in London or are considering an investment, the most useful next step is a borough-specific assessment.

We can help you evaluate:

• Likely demand profile for your exact location.
• Suitable letting model (short-term, medium-term or long-term).
• Expected occupancy and revenue ranges based on property type.
• Key regulatory and planning considerations for your borough.
• Operational requirements and cost structure.
• Whether your property aligns with your broader financial goals.

Contact Dwellers Delight to request a borough-specific forecast and strategy review for your property.