Investing in serviced accommodation can be a lucrative venture, especially in a popular tourist destination like the UK.
This guide to serviced accommodation can enlighten those wanting to deliver strong rental returns on holiday lets, for example.
However, it’s important to choose the right location to maximize your return on investment – ensuring you pick a destination with a strong tourist demand is essential!
Below are some of the best UK cities to invest in serviced accommodation:
London
As the capital city, London attracts millions of tourists each year. Areas such as Kensington, Chelsea, and Westminster are particularly popular for short-term rentals.
Keep in mind that property prices in London are generally higher, so careful financial planning is essential.
Edinburgh
With its rich history, stunning architecture, and vibrant festivals, Edinburgh is a prime location for holiday lets. The Royal Mile, Grassmarket, and New Town are sought-after areas for tourists.
Additionally, during the Edinburgh Festival Fringe, the demand for short-term rentals is exceptionally high.
Bath
Known for its Roman baths, Georgian architecture, and charming atmosphere, Bath is a UNESCO World Heritage Site.
The city attracts visitors throughout the year, making it a favourable location for holiday lets. Properties near the city centre, Pulteney Bridge, or the Royal Crescent are ideal choices.
York
With its medieval charm, historic walls, and iconic York Minster, York is a popular tourist destination in Northern England. The city offers a range of attractions, including the Jorvik Viking Centre and the Shambles.
The areas near the city centre and the York Railway Station are particularly attractive for holiday lets.
Brighton
As a seaside city, Brighton is renowned for its lively atmosphere, the iconic Brighton Pier, and the Royal Pavilion.
The city attracts a diverse range of visitors, including tourists, business travellers, and students. Properties in the city centre or close to the seafront are in high demand for short-term rentals.
Cambridge
Known for its prestigious university and beautiful architecture, Cambridge is a popular destination for tourists and academics alike.
The historic city centre, close to attractions such as King’s College and the Fitzwilliam Museum, is an excellent location for holiday lets.
Oxford
Another renowned university city, Oxford offers a blend of history, culture, and stunning architecture.
The city attracts tourists throughout the year, with notable attractions like the Bodleian Library and Christ Church. Properties near the city centre or within walking distance of the university colleges are highly sought after for holiday lets as those seek a sophisticated cultural retreat.
Cornwall
The stunning coastal region of Cornwall is a favourite holiday destination in the UK. Towns like St Ives, Padstow, and Newquay are particularly popular for short-term rentals due to their beautiful beaches and picturesque landscapes.
Lake District
If you prefer a rural location, the Lake District in Cumbria is an excellent choice. The area is renowned for its stunning lakes, mountains, and charming villages.
Towns like Keswick, Ambleside, and Windermere are sought-after locations for holiday lets – for those in the North West especially!
Scottish Highlands
For those looking for a unique and scenic location, the Scottish Highlands offer breathtaking landscapes, castles, and lochs.
Places like Inverness, Aviemore, and Fort William are attractive for tourists, making them suitable for
Manchester
As a vibrant and cosmopolitan city, Manchester has seen significant growth in its tourism industry. With renowned football clubs, cultural events, and a thriving music scene, Manchester attracts visitors from around the world.
Areas such as the city centre, Northern Quarter, and Salford Quays offer excellent investment opportunities for serviced accommodation owing to the diverse economy of the Northern Powerhouse city.
Bristol
Known for its creative and artistic atmosphere, Bristol is a city full of character. With its vibrant street art, historic harborside, and a range of cultural events, it has become an increasingly popular destination for tourists.
Areas like Clifton, Bristol City Centre, and Harbourside are in high demand especially as they serve as perfect locations for that weekend city getaway.
Glasgow:
Scotland’s largest city, Glasgow, has undergone significant regeneration in recent years. It offers a mix of stunning architecture, world-class museums, and a thriving arts scene.
The city centre, West End, and Finnieston are particularly desirable areas for investment but in recent years the Southside has become a desirable location for young professionals and so serviced accommodation may follow.
Cardiff
As the capital of Wales, Cardiff is a vibrant city with a rich cultural heritage. It boasts attractions such as Cardiff Castle, the Principality Stadium, and the Cardiff Bay area.
Properties near the city centre, Cardiff Bay, or the trendy Pontcanna neighbourhood are popular choices for holiday lets.
The Cotswolds
Known for its idyllic countryside, charming villages, and thatched-roof cottages, the Cotswolds is a highly sought-after destination for tourists seeking a quintessential English experience.
Popular towns like Chipping Campden, Bourton-on-the-Water, and Stow-on-the-Wold offer excellent opportunities for holiday let investments.
Liverpool
Famous for its musical heritage, Liverpool attracts visitors interested in the Beatles’ history and cultural attractions like the Albert Dock and the Tate Liverpool.
The city centre, waterfront areas, and the trendy Baltic Triangle are desirable locations for Airbnb or holiday lets.
Bath
The historic city of Bath is renowned for its Roman baths, Georgian architecture, and charming atmosphere.
It attracts visitors throughout the year, making it a favourable location for holiday lets. Properties near the city centre, Pulteney Bridge, or the Royal Crescent are ideal choices.
Norfolk Broads
A network of rivers, lakes, and picturesque villages, the Norfolk Broads offer a unique holiday experience. It’s a popular destination for boating holidays and nature lovers.
Areas like Wroxham, Horning, and Ludham are popular destinations for those looking to getaway so why not explore its potential as an investment opportunity?
Cambridge
Known for its prestigious university and beautiful architecture, Cambridge is a popular destination for tourists and academics alike.
The historic city centre, close to attractions such as King’s College and the Fitzwilliam Museum, is an excellent location for holiday lets.
Oxford
Another renowned university city, Oxford offers a blend of history, culture, and stunning architecture. The city attracts tourists throughout the year, with notable attractions like the Bodleian Library and Christ Church.
Properties near the city centre or within walking distance of the university colleges are highly sought after for holiday lets.
Why Invest?
When investing in serviced accommodation like Airbnb or holiday lets, it’s crucial to consider factors such as local regulations, property prices, competition, and demand for short-term rentals.
Taking into account factors such as local regulations, property prices, competition, and demand for short-term rentals will be essential.
Additionally, consider partnering with a property management company or Airbnb management service to handle the day-to-day operations and ensure a smooth rental experience for your guests.
