London Landlords: How to Actually Hit 9% Yields (It's Not Through Traditional Buy-to-Let)

The Headline That Caught Every Landlord's Eye

If you've been anywhere near property news recently, you'll have seen the figure: landlords who held onto their portfolios are now seeing yields climb to 9%. According to Property Wire, with 477,000 landlord exits since 2014 and London house prices falling 3.1%, those who stayed the course are sitting on a genuinely rare combination of lower capital values and surging tenant demand.

Sounds brilliant, right? There's just one catch.

That 9% figure is a national headline, and for London landlords relying on traditional Assured Shorthold Tenancies (ASTs), the real number still sits stubbornly around 5 to 6%. To actually capture those higher yields in the capital, you need a fundamentally different letting strategy. Let's break down exactly what that looks like.

Why Traditional London Yields Still Lag Behind

Let's do some quick maths. Say you own a one-bedroom flat in Zone 2 worth £400,000. On a standard AST, you might achieve monthly rent of around £1,800 to £2,000, which gives you a gross yield of roughly 5.4% to 6%.

That's certainly better than the 4 to 5% landlords were seeing a few years ago, and the improvement is real. Lower purchase prices (or lower current valuations for those who already own) combined with rising rents have nudged the needle upward. But 9%? Not even close on a traditional long let.

The 9% figure being reported nationally is driven by supply shortage dynamics in regions where property values are lower and rental demand has spiked. In cities like Manchester, Birmingham, and parts of the North East, the maths simply works differently. A £150,000 property renting at £1,125 per month hits that 9% mark naturally.

London's higher capital values mean the same percentage yield requires significantly more rental income. And the only realistic way to generate that income from a London property is to move beyond standard buy-to-let.

Serviced Accommodation: Where the 9% Yield Actually Lives

Serviced accommodation, sometimes called short-term lets or apart-hotels, is the letting model that bridges the gap between London's high property values and genuinely high yields. Instead of locking into a single tenancy at a fixed monthly rent, you offer your property as a fully furnished, flexible-stay option for business travellers, relocating professionals, tourists, and corporate guests.

Here's where the numbers get interesting.

That same Zone 2 one-bed flat, when operated as serviced accommodation, can realistically command nightly rates of £120 to £180 depending on the area, the season, and the quality of the listing. Even at a conservative 75% occupancy rate and an average nightly rate of £140, you're looking at monthly revenue of around £3,150. That translates to a gross yield of approximately 9.5%.

Suddenly, the headline figure isn't just achievable. It's conservative.

Corporate Lets: The Sweet Spot Within Serviced Accommodation

Within the serviced accommodation world, corporate bookings represent the most lucrative and stable segment for London landlords. Companies regularly need high-quality accommodation for employees on project assignments, international relocations, or extended business trips. These bookings tend to be longer (two weeks to three months), more predictable, and less operationally demanding than nightly tourist stays.

Corporate guests also tend to treat properties with greater care, reducing wear and tear. And because companies are footing the bill, they're far less price-sensitive than leisure travellers. Premium rates and reliable occupancy: it's the combination every landlord dreams of.

What Landlords Need to Know Before Making the Switch

Before you list your property on Airbnb tonight, there are some important realities to consider.

Regulatory Compliance

London has a 90-day limit on short-term lets per calendar year unless you obtain planning permission for a change of use. This rule applies specifically to entire-property listings on platforms like Airbnb. However, there are legal routes around this, including registering for business rates, obtaining the appropriate planning consent, or working with a management company like Airhosts that understands the regulatory landscape inside out.

Operational Complexity

Serviced accommodation is not passive income in the way a traditional AST can be. It requires professional cleaning between guests, linen management, guest communication, pricing optimisation, listing management across multiple platforms, and maintenance coordination. The revenue potential is significantly higher, but so is the operational workload.

Furnishing and Setup Costs

Your property needs to be fully furnished to a high standard. Think quality bedding, a well-equipped kitchen, fast WiFi, and tasteful decor. Initial setup costs typically run between £3,000 and £8,000 depending on the property's current state, but this investment pays for itself quickly through higher nightly rates.

Void Periods and Seasonality

London benefits from year-round demand, especially from the corporate sector. But there will be quieter weeks, and your yield calculations should always factor in realistic occupancy rates rather than assuming 100% bookings. A well-managed London property typically achieves 75 to 85% occupancy across the year.

The DIY Trap: Why Most Landlords Struggle Alone

Here's the honest truth. Many landlords start managing serviced accommodation themselves, attracted by the higher income potential, only to find themselves overwhelmed within a few months. Responding to guest enquiries at midnight, coordinating last-minute cleaning, adjusting prices daily to stay competitive, handling complaints, managing reviews: it quickly becomes a second job.

And the irony is that poorly managed serviced accommodation can actually yield less than a standard AST, once you factor in the time cost, inconsistent occupancy, and below-market pricing from landlords who don't have the tools or expertise to optimise their listings.

This is precisely why the landlords seeing the best returns in this space are the ones who partner with professional management companies rather than trying to do everything themselves.

The Simplest Path to 9% Yields in London

Working with a specialist short-term let management company removes virtually all of the operational burden while maximising the financial upside. At Airhosts, we manage every aspect of the serviced accommodation process for London landlords: from professional photography and listing optimisation across Airbnb, Booking.com, and corporate booking channels, to dynamic pricing, guest vetting, cleaning coordination, linen supply, and 24/7 guest support.

Our landlords don't get midnight messages from guests. They don't chase cleaners. They don't worry about pricing strategy or regulatory compliance. They receive consistent, high-yield income deposited into their account each month, with full transparency through their owner dashboard.

The result? London landlords who work with Airhosts routinely achieve yields of 8 to 12%, significantly outperforming both traditional ASTs and self-managed short-term lets. And because we actively target the corporate and professional relocation market, our properties benefit from longer average stays, higher nightly rates, and lower turnover costs.

Your Portfolio Survived the Exodus. Now Make It Perform.

You held on when nearly half a million landlords sold up. That took conviction, and the market is finally rewarding patience with lower valuations and surging demand. But the reward only fully materialises if you match your strategy to the opportunity.

Traditional ASTs will give you 5 to 6%. The 9% headline, and potentially more, is reserved for landlords who embrace serviced accommodation with the right support behind them.

If you're a London landlord ready to unlock the yields your property is truly capable of, get in touch with the Airhosts team today. We'll run the numbers on your specific property, show you exactly what's achievable, and handle everything from day one. No stress, no guesswork, just better returns.

Contact Airhosts now and find out what your property could really earn.