Mid-Term Rentals in London: A Smart Strategy for the Post-Renters' Rights Act Lettings Market

London's Lettings Calendar Has Changed, and Landlords Need to Catch Up

If you're a London landlord who used to set your watch by the August lettings rush, you've probably noticed something feels different. Recent data from Foxtons, reported by Property118, confirms what many of us have suspected: the traditional August peak has flattened into a broader, less predictable summer season. Competition remains fierce, with around 24 renters chasing every listing, but the neat, cyclical rhythm that landlords once relied on has been disrupted.

The culprit? The Renters' Rights Act. By abolishing Section 21 "no fault" evictions and reshaping the tenancy framework, the Act has changed when and how tenants move. The old pattern of fixed Assured Shorthold Tenancy (AST) cycles rolling over in predictable waves is fading. In its place, we're seeing demand spread more evenly across the summer months, which sounds positive until you realise it also means void periods have become harder to predict and harder to plan around.

For landlords sitting empty for weeks (or months) waiting for the "right" moment to re-let, this new reality is costing real money. But there's a strategy that turns this volatility into opportunity: mid-term rentals.

What Exactly Are Mid-Term Rentals?

Mid-term rentals sit in the sweet spot between traditional long lets and short-term holiday bookings. Typically lasting one to three months, they involve fully furnished properties let to guests who need more than a hotel stay but aren't looking for a 12-month commitment.

Think of the types of people who need this kind of accommodation in London:

• Relocating professionals moving to the city for a new role and needing a base while they search for a permanent home
• Insurance housing tenants displaced by fires, floods, or major repairs, often funded by insurance companies at premium rates
• Project contractors and consultants on fixed-term assignments in London, from construction managers to IT specialists
• Corporate transferees and visiting executives who need something more comfortable and cost-effective than a serviced apartment

Demand from these groups doesn't follow the old August cycle at all. It's driven by business timelines, insurance claims, and career moves, which happen year-round.

How the Strategy Works in Practice

To run mid-term lets effectively, you need a furnished property that feels like a home, not a bare rental. That means comfortable furniture, a equipped kitchen, reliable Wi-Fi, and quality linens. The standard is closer to what you'd expect from a high-end Airbnb than a traditional buy-to-let.

Pricing and Income

Mid-term rentals in London typically command a premium over standard AST rents. A one-bedroom flat in Zone 2 that might achieve £1,800 per month on a long let could generate £2,400 to £3,000 per month as a furnished mid-term rental, depending on the area and the quality of the setup. Insurance-funded tenants, in particular, often come with generous budgets because insurers are paying market rates for immediate availability.

Finding Tenants

You won't find most mid-term tenants on Rightmove. Instead, you'll need to list across platforms like Airbnb (for stays over 28 days), Spotahome, HousingAnywhere, and corporate relocation portals. Building relationships with insurance loss adjusters and relocation agencies can also create a steady pipeline. This multi-channel approach is essential but, as you might imagine, time-consuming.

Legal Considerations

This is where things get nuanced. Stays under 90 consecutive nights in most London boroughs fall under short-term let regulations and typically require planning permission. Mid-term lets of 90 days or more generally don't trigger the same restrictions, but you still need to ensure your lease, mortgage terms, and insurance all permit this type of letting. The Renters' Rights Act itself primarily targets traditional ASTs, so well-structured mid-term agreements on different contractual terms can sit outside some of its more burdensome provisions. Always get proper legal advice here.

The Pros and Cons Landlords Should Weigh

The Advantages

• Higher per-month income compared to long lets
• Flexibility to use the property between bookings or pivot strategy seasonally
• Reduced exposure to problem tenants since shorter commitments mean issues are naturally time-limited
• Monetising void periods that would otherwise cost you mortgage payments with zero income

The Challenges

• Turnover and management intensity: every one to three months you're cleaning, restocking, checking inventory, and onboarding new tenants
• Furnishing costs: setting up a property to mid-term rental standards requires upfront investment, typically £3,000 to £8,000 depending on the size
• Gaps between bookings: without strong marketing and multiple listing channels, you can still end up with empty weeks
• Regulatory complexity: staying compliant across borough-specific rules, tax obligations, and evolving legislation takes constant attention

The honest truth is that mid-term rentals can be excellent income generators, but they require significantly more active management than a traditional tenancy. For landlords already stretched thin, the operational burden can quickly eat into those higher returns.

Why Many Landlords Are Looking Beyond Mid-Term Lets

Here's what we see at Airhosts every week: landlords come to us having tried to manage mid-term lets themselves, and they're exhausted. The income looked great on paper, but the reality of juggling listings, coordinating cleaners, handling guest communications, and navigating compliance made it feel like a second job.

That's where professionally managed short-term lets offer a compelling alternative. With a partner like Airhosts handling everything from listing optimisation and dynamic pricing to guest vetting, cleaning, and 24/7 support, landlords get the premium income that comes with flexible letting without any of the operational headaches.

Short-term lets, when managed professionally in London, consistently outperform both traditional long lets and self-managed mid-term rentals. We're talking about returns that can be 20% to 40% higher than AST rents, with full regulatory compliance built in. Our team handles the 90-night rule, council registrations, safety certificates, and everything else that keeps landlords up at night.

The key difference is leverage. Mid-term rentals done solo means you're trading your time for marginally higher income. Professional short-term let management means your property works harder while you don't work at all.

The Simplest Path to Higher Returns

London's rental market has changed. The old playbook of listing in July, securing a tenant by August, and collecting rent for 12 months is no longer reliable. Landlords who adapt will thrive. Those who wait for the traditional cycle to return will keep losing money to unpredictable voids.

Mid-term rentals are a legitimate and valuable strategy, especially for bridging those newly volatile shoulder periods. But if you want the highest returns with the lowest personal involvement, professionally managed short-term lets remain the gold standard for London property income.

Airhosts makes this effortless. We manage your property end to end, maximise your nightly rates with data-driven pricing, and keep your calendar full while you focus on everything else in your life. If your London property is sitting empty or underperforming, let's change that. Get in touch with the Airhosts team today and find out exactly what your property could be earning.