Corporate Serviced Apartments Surging 8.1% in 2026: Why London Landlords Should Reposition Now

A Market Shift London Landlords Can't Afford to Ignore

The numbers are in, and they tell a compelling story. Savills' latest European Serviced Apartment report confirms what many of us in the London property world have been sensing for months: corporate travel spending on UK serviced apartments is surging, with GBTA forecasting an 8.1% increase in 2026 alone. At the same time, prime London rental stock has ballooned 48.4% year on year, flooding the traditional lettings market with competition and putting downward pressure on AST rents.

If you're a London landlord sitting on a well-located one or two bed flat, this convergence of trends deserves your full attention. The corporate extended-stay market is expanding fast, and it represents a genuine opportunity to earn premium income from your property without the regulatory headaches that come with short-term holiday lets.

Let's break down exactly how this works, what the real pros and cons look like, and how to decide if it's the right move for your property.

What Is the Corporate Extended-Stay Model?

The corporate extended-stay model sits in a sweet spot between traditional tenancies and short-term holiday lets. Here's the core concept: you furnish your flat to a high standard and let it to corporate tenants, relocating professionals, project teams, or international executives on stays of 90 days or more.

Because these stays exceed 90 nights, your property remains firmly within the C3 residential use class. That means you avoid London's 90-night short-let cap entirely, and you don't need planning permission for a change of use. You're simply renting your home to a tenant, just at a much higher per-night rate than a traditional AST would deliver.

Corporate tenants typically book through their employers, relocation agencies, or specialist serviced apartment platforms. They expect hotel-quality furnishings, reliable WiFi, weekly housekeeping, and a seamless check-in experience. In return, they're willing to pay a significant premium over market rent.

Why the Numbers Make Sense Right Now

Expanding Demand, Shrinking Quality Supply

The 8.1% jump in corporate serviced accommodation spend isn't happening in a vacuum. London remains one of the world's top destinations for business travel, financial services, tech, and consulting. Companies increasingly prefer serviced apartments over hotels for extended assignments because they offer better value, more space, and a more comfortable experience for employees.

Yet while demand is climbing, the supply of genuinely high-quality, professionally managed corporate apartments hasn't kept pace. Most landlords are still locked into traditional ASTs or dabbling in weekend tourist lets. That gap between demand and quality supply is where the opportunity lives.

Premium Rates Without the 90-Night Headache

A well-presented one bed flat in zones one or two can command £150 to £250 per night on a 90-plus day corporate booking. Even at the lower end of that range, you're looking at monthly income of £4,500, well above what most ASTs deliver in the same locations. And because you're operating within the C3 residential model, there are no short-let licence requirements and no 90-night annual restrictions.

The AST Market Is Getting Crowded

With prime rental stock up 48.4% year on year, landlords competing for traditional tenants are finding themselves in a race to the bottom on pricing. Void periods are stretching, and tenants have more negotiating power than they've had in years. Repositioning for the corporate market lets you step out of that crowded arena entirely.

What You Need to Get Right

Before you rush to list your flat on a corporate booking platform, here's what the strategy demands.

Furnishing and Presentation

Corporate tenants expect a polished, move-in-ready experience. Think quality linens, a fully equipped kitchen, fast broadband, a dedicated workspace, and a clean, modern aesthetic. This isn't about IKEA basics. It's about creating a space that feels like a boutique hotel with the comfort of a real home. Initial furnishing costs can run between £5,000 and £15,000 depending on the property.

Operational Complexity

This is where many landlords underestimate the challenge. Corporate extended stays require professional guest communication, regular housekeeping, linen changes, maintenance response, and seamless transitions between bookings. You're not just a landlord anymore. You're running a hospitality operation. The tenants are paying premium rates and they expect premium service, promptly and consistently.

Finding Corporate Clients

Accessing the corporate market isn't as simple as listing on Airbnb. You need relationships with relocation agents, corporate travel managers, and specialist serviced apartment platforms like SilverDoor, SITU, and Homelike. Building these distribution channels takes time, expertise, and a track record of reliable service.

Regulatory Awareness

While the 90-plus day model avoids the short-let cap, you still need to be mindful of council tax implications, insurance requirements, and building lease restrictions. Some leasehold properties have clauses that restrict short or medium-term lets, so always check your lease and building management terms before committing.

The Honest Trade-Off: Complexity vs. Returns

Here's where it gets real. The corporate extended-stay model is genuinely attractive on paper, and for landlords who can execute it well, the returns are excellent. But "executing it well" is the operative phrase.

Managing a corporate serviced apartment to the standard that justifies premium rates is a hands-on, operationally demanding business. From coordinating professional cleans between stays to handling last-minute booking requests from corporate travel desks, the workload is significant. Many landlords who attempt this solo find themselves overwhelmed within a few months, and service quality drops, which means bookings dry up.

This is precisely why working with a specialist management company makes such a difference. When you partner with a team like Airhosts, you get access to the operational infrastructure, guest management expertise, and distribution networks that the corporate market demands, without having to build any of it yourself.

The Simplest Path to Premium Returns

What many London landlords discover is that professionally managed short-term and medium-term lets, handled end to end by a specialist, deliver the best of both worlds. You capture the premium nightly rates that the corporate and serviced apartment market offers, while someone else handles the furnishing guidance, guest vetting, housekeeping, pricing optimisation, and 24/7 guest support.

Airhosts manages exactly this kind of property across London, from prime central locations to high-demand fringe zones. Whether your flat is best suited for 90-plus day corporate bookings, shorter professional stays, or a blended strategy that maximises occupancy year round, the operational burden sits with us, not with you.

The result? Hands-off income that consistently outperforms traditional ASTs, with none of the midnight phone calls or housekeeping logistics.

Your Property Could Be Earning More, Starting Now

The corporate serviced apartment market is growing fast, and London landlords with the right properties in the right locations are perfectly positioned to benefit. But positioning is only half the battle. Execution is everything.

If you own a one or two bed flat in prime or fringe-prime London and you're ready to stop leaving money on the table, get in touch with Airhosts today. We'll assess your property, show you exactly what it could earn, and take care of everything from listing to linen. No complexity, no guesswork, just consistently higher returns from a team that knows the London market inside and out.

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