UK Rental Market 2025: Short-Term vs Long-Term Lets

The UK rental market is changing fast, and landlords are asking: “Should I focus on short-term rentals or long-term rentals?”

Both strategies can work well, but they deliver very different results. Here’s what you need to know.

Short-Term Rentals

Short-term rentals (or serviced accommodation) are properties let for days, weeks, or a few months. Popular platforms like Airbnb and Booking.com have fuelled their growth in cities such as Manchester, Milton Keynes, and Northampton.

Benefits:

• Higher nightly rates

• Flexible pricing depending on demand

• Popular with contractors, business travellers, and families in between moves

Considerations:

• Occupancy may be seasonal

• Requires active management (cleaning, guest communication, check-ins)

• Regulations differ across the UK

Long-Term Rentals

Long-term lets usually run for 6–12 months under an Assured Shorthold Tenancy (AST).

Benefits:

• Predictable monthly income

• Fewer turnovers and less management

• Stability for landlords who prefer consistency

Considerations:

• Lower rental yield compared to short-term lets

• Rents can’t always be adjusted quickly

• Risk of void periods if a tenant leaves unexpectedly

Occupancy Rates: Which Performs Better?

• Short-term rentals in strong markets like Manchester and Milton Keynes can achieve 70–85% annual occupancy.

• Long-term rentals average 90–95% occupancy, offering steadier income but usually at lower returns.
  

UK Rental Hotspots in 2025

High demand is driving growth in:

• Manchester & Salford – Popular with professionals, students, and contractors

• Northampton – Close to logistics hubs and hospitals, ideal for contractors and relocating families

• Milton Keynes – Strong transport links and corporate demand

These locations are short-term rental hotspots, but they also perform well for long-term tenants.

Which Strategy Is Right for You?

Your choice depends on:

• Investment goals – Do you want stability or higher returns?

• Property location – Is there strong demand from professionals, hospital staff, or contractors?

• Risk tolerance – Are you comfortable with seasonal fluctuations in exchange for higher profits?

Final Thoughts

At AV Hughes Properties, we provide high-quality short-term accommodation in Manchester, Milton Keynes, and Northampton, helping landlords maximise returns and guests enjoy comfortable stays.

👉 Discover our properties today at www.avhughesproperties.com.