The Rise of Serviced Accommodation: A Game-Changer for Renters in the UK

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The UK property market, boasting an average yield of 5.31%, has always been a magnet for investors. 

However, a new player, serviced accommodation, is reshaping the rental landscape. 

The burgeoning sector is meeting the evolving needs of modern renters who crave flexibility, convenience, and a touch of luxury.

As we delve deeper into this phenomenon, we’ll explore how this game-changer influences UK property investors and why it’s becoming the preferred choice for many. 

So, let’s embark on this journey to understand the revolution that is the rise of serviced accommodation.

Key takeaways:

  • The rise of serviced accommodation brings a fresh perspective to your investment portfolio, allowing you to tap into the lucrative sector of flexible, high-quality rentals.
  • Investing in the serviced accommodation sector can mitigate risks associated with traditional rentals and potentially amplify your overall returns.

The Growth of Serviced Accommodation in the UK 

The serviced accommodation sector in the UK has seen significant growth in recent years, becoming a key player in the property market. 

The growth is driven by various factors, including: 

  • Changing tenant preferences
  • Increased demand for flexible living arrangements
  • The rise of the Rent to Rent Serviced Accommodation (R2RSA) business model

Increasing Supply of Serviced Accommodations

According to a report by Knight Frank, the UK serviced apartment sector is forecast to grow to over 27,000 units by the end of 2022, with annual growth in supply forecast at 5.7%. 

Growing Preference Among Corporate Clients

A report by The Business Travel Magazine reveals that 15% of UK businesses increased their overall use of serviced apartments during 2021, indicating a growing preference for this accommodation type among corporate clients.

These trends suggest that the rise of serviced accommodation in the UK is not just a passing phase but a significant shift in the property market.

As we move on to the next section, we’ll delve deeper into the R2RSA business model, a key driver of the growth of serviced accommodation in the UK.

The R2RSA Business Model

The Rent to Rent Serviced Accommodation (R2RSA) model is a key driver of the growth of serviced accommodation in the UK. 

The innovative business model offers significant benefits for both investors and guests.

The R2RSA model allows investors to generate a significant return on investment with minimal upfront costs. Since investors only rent the property and not buy it outright, they don’t need to worry about:

  • Large down payments
  • Mortgages
  • Property taxes

Instead, they can focus on marketing the property and providing guests with a great experience. For guests, serviced accommodation provides many advantages over traditional hotels, including more space, greater privacy, and flexibility.

As we transition to the next section, we will explore the advantages of serviced accommodation for renters in more detail.


Advantages of Serviced Accommodation for Renters

Serviced accommodation offers several advantages for renters, making it a highly attractive option compared to traditional rentals. 

These benefits range from more space and privacy to cost-effectiveness, catering to the diverse needs of modern renters.

1. More Space and Privacy

Serviced accommodations, unlike traditional hotels, offer more space and privacy. Renters can access a fully furnished apartment or house with a kitchen, living room, and multiple bedrooms.

Unlike a cramped hotel, serviced accommodations offer separate living and sleeping areas. Also, serviced accommodations offer a private space where renters can unwind without being disturbed.

2. Flexibility and Convenience

Serviced accommodations provide flexibility and convenience, allowing renters to choose the length of their stay and come and go as they please.

  • Flexible lease terms: Renters can choose from short-term or long-term stays.
  • Convenience: Renters can set their schedule without worrying about hotel check-in/check-out times.

For instance, a business traveller might opt for a serviced apartment for a few months during a project assignment, enjoying the flexibility to extend the stay if the project timeline changes.

3. Cost-Effectiveness

Serviced accommodations offer better value for money than traditional hotels.

  • Savings on meals: With a fully equipped kitchen, renters can save money by cooking their meals.
  • Discounts for longer stays: Many serviced accommodation providers offer discounted rates.

Consider a couple relocating to a new city who choose a serviced apartment for a month. They can save significantly on dining expenses by cooking at home and enjoy a discounted rate for their extended stay.

As we conclude, we will reflect on the impact of the rise of serviced accommodation in the UK and how it shapes the future of the rental market.



The rise of serviced accommodation in the UK is a significant shift in the property market. The trend offers numerous benefits for renters, including: 

  • More space and privacy 
  • Flexibility
  • Cost-effectiveness 

…making it a preferred choice for many.

As this sector continues to grow, it is expected to influence the UK property market further, providing opportunities for investors and a more satisfying living experience for renters.

Working with a professional company for investing in property can be a good move. They bring expertise in the industry, knowledge of the market, and strategic guidance to help you go through the process and make decisions that make you money.

That’s where you can trust Pluxa Property.

We’re Pluxa Property, a top company for investing in property, and we have over 10 years of experience. We’ve solved many problems related to serviced apartments and can do the same for you.

With Pluxa Property, you can feel safe knowing that experts are guiding your journey to invest in property. Our team is committed to giving amazing service and sharing strategies that work to meet your investment goals.

Contact our R2SA property investment experts to kickstart your investments.


How is serviced accommodation different from traditional rentals?

Serviced accommodation offers a more flexible and convenient living arrangement than traditional rentals. These fully furnished properties come with various services, such as cleaning and maintenance.

Are serviced accommodations available in all parts of the UK?

Yes, serviced accommodations are available across the UK, particularly in urban areas, with a high demand for flexible living arrangements.


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