Where Serviced Accommodation Demand Is Growing Across the UK

London dominates the UK serviced accommodation market, but 2026 is increasingly the year of the regions. Corporate travel bookings to destinations outside London grew by 12.5% year-on-year, nearly double London’s 7% growth rate, with Manchester, Bristol and Birmingham collectively matching a significant share of London’s business travel volume.

For landlords and investors, this shift creates compelling opportunities in cities where entry prices are lower, yields are stronger and demand from business travellers, contractors, tourists and event-goers remains robust.

At Dwellers Delight, we manage properties across London and support owners evaluating regional opportunities. This guide highlights the best areas outside London for serviced accommodation in 2026, explains what drives demand in each location and outlines key regulatory and operational considerations.

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

 

 

How to Choose the Right Area Outside London

The “best” area depends on your strategy and guest profile. Important factors include:

• Primary demand source: business travel, contractors, tourism, events, hospitals, universities or relocation.
• Transport connectivity: rail, motorway and airport links.
• Property type and price point: city-centre apartment, suburban house, budget or premium.
• Regulatory environment: short-term let rules, licensing, planning and enforcement.
• Competition: number and quality of hotels and serviced apartments.
• Operating costs: cleaning, utilities, management and maintenance.
• Owner objectives: maximum yield, stable occupancy, capital growth or flexible personal use.

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

Manchester

Manchester has established itself as one of the UK’s leading regional hubs for business, culture, sport and education. The city combines a strong corporate base with significant leisure and event-driven demand.

Demand drivers

• Major corporate and professional services presence.
• Media, technology and creative industries.
• Universities and hospitals.
• Sporting events, concerts and festivals.
• Strong rail and motorway connections across the North.

Industry commentary highlights Manchester as a key growth city for corporate housing in 2026, with well-positioned serviced properties achieving 65-70% annual occupancy and peaks above 85% in September, October and the post-New Year business travel window.

Typical guest profile

• Corporate travellers and project teams.
• Contractors and consultants.
• Tourists attending events, sport and cultural attractions.
• Visitors to universities and hospitals.
• Relocating professionals.

Rental potential and yields

Manchester consistently appears in top yield tables for 2026, with gross rental yields typically in the 6–8% range for buy-to-let and higher for some HMO and serviced strategies.

For serviced accommodation, city-centre nightly rates for corporate mid-term bookings are reported in the £90–£180 range, with suburban rates around £70–£120.

Suitability

Manchester is suitable for:

• City-centre apartments targeting business and leisure demand.
• Properties near transport hubs, hospitals and universities.
• Owners seeking a balance of corporate and event-driven occupancy.
• Investors comfortable with a competitive but deep market.

Birmingham

Birmingham is the UK’s second-largest city and a major transport and business hub in the West Midlands. Ongoing regeneration, HS2 and a diversified economy support sustained demand for accommodation.

Demand drivers

• Corporate and professional services sectors.
• HS2 and major infrastructure projects.
• Conferences, exhibitions and events.
• Universities and hospitals.
• Strong rail and motorway connectivity.

Birmingham is frequently cited alongside Manchester and Leeds as a core growth city for corporate housing, with average nightly rates of £85-£160 in the city centre and £65–£110 in the suburbs for mid-term corporate bookings.

Typical guest profile

• Business travellers and consultants.
• Contractors on infrastructure and construction projects.
• Event and conference attendees.
• University and hospital visitors.
• Relocating employees and families.

Rental potential and yields

Birmingham typically shows gross yields in the 6–7.5% range for buy-to-let, with some strategies reporting higher returns.

For serviced accommodation, the combination of strong corporate demand, regeneration and relatively moderate entry prices makes Birmingham attractive for both short-term and mid-term models.

Suitability

Birmingham is suitable for:

• City-centre apartments near business districts and transport.
• Properties targeting contractors and project teams.
• Owners seeking a large, diversified regional market.
• Investors focused on yield and regeneration upside.

Leeds

Leeds is a leading financial, legal and professional services centre in the North, with a strong economy, major universities and a vibrant cultural scene.

Demand drivers

• Financial and professional services clusters.
• Legal, insurance and business services.
• Universities and teaching hospitals.
• Conferences, sport and cultural events.
• Excellent rail links to London, Manchester and the North.

Leeds is regularly highlighted as a high-yield market, with gross yields reported in the 7–9% range depending on location and property type.

Typical guest profile

• Corporate travellers in finance, legal and professional services.
• Contractors and consultants.
• University and hospital visitors.
• Tourists attending events and exploring Yorkshire.

Rental potential and yields

City-centre nightly rates for serviced accommodation are typically below Manchester and Birmingham, with reported ranges around £80–£150 in the centre and £60–£100 in surrounding areas.

Combined with strong yields and steady demand, Leeds is well suited to both short-term and mid-term strategies.

Suitability

Leeds is suitable for:

• Apartments in the city centre and business districts.
• Properties near hospitals, universities and transport.
• Owners targeting professional and contractor demand.
• Investors seeking strong yields with growth potential.

Edinburgh

Edinburgh is a unique market, combining a strong corporate and public-sector base with world-famous festival demand.

Demand drivers

• Financial services, public sector and tourism.
• The Edinburgh Festivals, especially the Fringe in August.
• Conferences, culture and heritage tourism.
• Universities and research institutions.

During the 2026 festival month, Edinburgh hotels are averaging around 70% occupancy, with peak weeks reaching approximately 76.7% and average daily rates around $467–$504. Self-catered apartments during the festival can command £200-£500+ per night, compared with £80-£200 in normal periods.

Typical guest profile

• Festival-goers and cultural tourists.
• Corporate and public-sector travellers.
• University and event visitors.
• International tourists.

Rental potential and yields

Edinburgh appears in yield tables with gross yields around 7.9% for HMO-style strategies and strong performance for well-located serviced apartments.

The festival period can generate a disproportionate share of annual revenue, but owners must plan for seasonality and comply with Scotland’s short-term let licensing scheme.

Regulatory note

Scotland requires a mandatory short-term let licence for all short-term lets, including entire properties and rooms in the host’s own home. Operating without a licence can lead to fines up to £2,500.

Suitability

Edinburgh is suitable for:

• City-centre apartments targeting festival and tourism demand.
• Properties that can also attract corporate and university visitors outside festival season.
• Owners comfortable with licensing requirements and seasonality.
• Investors seeking high peak-season revenue with year-round underpinning demand.

Bristol and Bath

Bristol and Bath offer a combination of corporate, tourism and lifestyle appeal in the South West, with strong transport links to London, Wales and the South.

Demand drivers

• Technology, aerospace and professional services in Bristol.
• Tourism in Bath and surrounding areas.
• Universities and hospitals.
• Conferences and cultural events.
• Proximity to London and the M4 corridor.

New investment and refurbishment in Bristol’s serviced accommodation sector, such as the Clifton Village apartments, signals confidence in the market.

Typical guest profile

• Corporate travellers in technology and professional services.
• Tourists visiting Bath, Bristol and the South West.
• University and hospital visitors.
• Relocating professionals and families.

Rental potential and yields

Bristol is frequently cited as a strong regional market with healthy room rates and demand-to-cost ratios. While specific serviced accommodation nightly rates vary by property and season, the city’s mix of business and leisure demand supports both short-term and mid-term models.

Suitability

Bristol and Bath are suitable for:

• City-centre apartments and townhouses.
• Properties targeting a blend of corporate and tourism demand.
• Owners seeking a South West base with good London connectivity.
• Investors focused on quality, lifestyle-led markets.

Other Notable Regional Markets

Several other cities and regions show promise for serviced accommodation in 2026.

Liverpool

• Strong cultural and tourism appeal.
• Regeneration and affordable entry prices.
• Gross yields often reported in the 7–8% range.

Newcastle and Gateshead

• Regional business and leisure hub in the North East.
• Universities, hospitals and event venues.
• Gross yields in the North East often reported in the 7–10% range.

Sheffield and Nottingham

• Solid university and hospital demand.
• Affordable property prices.
• Yields commonly in the 7–8.5% range.

Milton Keynes, Northampton and Salford

• Emerging hotspots with business growth and regeneration.
• Strong short-term let demand linked to contractors and relocation.

East Midlands: Derby, Nottingham, Chesterfield and the Peak District

• Mixed contractor, leisure and staycation demand.
• Data-led analysis shows occupancy-led markets in Derby and Nottingham, with higher ADRs in Peak District proxies.

These markets can be particularly suitable for owners who understand local demand drivers and are prepared to manage seasonality and contractor cycles.

Demand Trends Outside London

Several themes are shaping regional serviced accommodation in 2026:

• Corporate travel growth in the regions: Bookings to destinations outside London are growing faster than in the capital, with Manchester, Bristol and Birmingham narrowing the demand gap.
• MICE shift to regional cities: Meetings, incentives, conferences and exhibitions are increasingly held outside Central London, supported by better infrastructure and destination marketing.
• Event-led and staycation demand: City breaks, festivals, sport and domestic holidays continue to support short-stay demand in regional centres and coastal or rural areas.
• Yield advantage over London: Many regional cities offer higher gross yields than London, albeit with different capital-growth profiles.

Regulatory and Operational Considerations

While London’s 90-night rule does not apply outside London, regional markets have their own regulatory landscapes.

Scotland: mandatory licensing

All short-term lets in Scotland require a licence from the local council, with fines up to £2,500 for non-compliance.

Wales: registration scheme

Wales has its own registration scheme for short-term lets, with penalties for non-compliance.

England: evolving framework

In England, a national short-term let registration scheme is being developed, and local authorities are increasingly active in enforcement, particularly where neighbour complaints or housing-fraud concerns arise.

Owners should also review:

• Lease and freeholder restrictions.
• Mortgage-lender consent.
• Insurance suitable for short-term or mid-term lets.
• Business rates vs council tax thresholds.
• Safety certificates and compliance obligations.

Short-Term vs Mid-Term vs Long-Term in Regional Cities

As in London, the optimal strategy depends on the property and local demand.

Short-term

• Suitable in tourism and event-led markets (e.g. Edinburgh during festivals, coastal towns, city-break destinations).
• Higher nightly rates but more operational complexity.
• More exposed to seasonality.

Mid-term (28+ nights)

• Well suited to corporate, contractor and relocation demand in cities like Manchester, Birmingham, Leeds and Bristol.
• Fewer turnovers and more stable occupancy.
• Often more acceptable to freeholders and managing agents.

Long-term residential

• Predictable monthly income with lower operational complexity.
• Subject to residential-tenancy regulation, including the Renters’ Rights Act in England.
• Less flexibility for owner use or sale without tenant constraints.

In many regional cities, a mid-term corporate or contractor model can offer an attractive balance of yield, occupancy and operational simplicity.

Why Consider Regional Serviced Accommodation with Dwellers Delight?

At Dwellers Delight, we help owners evaluate both London and regional opportunities with a data-informed, compliance-first approach.

Our support includes:

• Market assessment: identifying cities and neighbourhoods aligned with your budget and goals.
• Demand analysis: understanding corporate, contractor, tourism and event drivers.
• Strategy selection: recommending short-term, mid-term or long-term letting.
• Revenue modelling: projecting realistic occupancy, rates and net returns.
• Compliance review: highlighting licensing, registration and safety requirements.
• Management coordination: supporting cleaning, maintenance, guest communication and inspections where offered.
• Owner reporting: clear, regular financial and performance updates.

Whether you are a London landlord diversifying regionally or a first-time investor outside the capital, a disciplined approach is essential.

Explore Dwellers Delight Locations

If you are considering serviced accommodation outside London, the next step is a focused review of your target cities and property types.

We can help you evaluate:

• Which regional markets suit your risk profile and capital.
• The most appropriate letting model for each location.
• Expected occupancy, rates and net returns after costs.
• Regulatory and licensing requirements by city and nation.
• How regional strategies can complement or diversify your existing portfolio.