Serviced Accommodation

What Is Serviced Accommodation?

Serviced accommodation (SA) is fully furnished, short-term rental property — typically booked nightly or weekly through platforms like Airbnb, Booking.com, and direct bookings. Properties are equipped with everything a guest needs: furniture, kitchen equipment, towels, toiletries, and Wi-Fi.

The 90-Day Rule

In London, you can only rent out your entire property on a short-term basis for up to 90 nights per calendar year without planning permission. Outside London, there is currently no national limit, but some local authorities are introducing restrictions through Article 4 directions. Always check with your local planning authority.

Revenue Potential

Running Costs

• Cleaning — £40-80 per turnover (biggest operational cost)
• Utilities — you pay all bills (£150-300/month)
• Platform fees — Airbnb charges 3% host service fee
• Wi-Fi and TV — essential for guest reviews (£40-60/month)
• Consumables — toiletries, coffee, tea (£30-50/month)
• Insurance — specialist SA insurance (£300-600/year)
• Furnishing — initial setup £3,000-8,000 per unit
• Management — if using a management company: 15-25% of revenue

Tax Benefits

Important: The Furnished Holiday Lettings (FHL) tax regime was abolished from 6 April 2025. SA properties no longer qualify for the special FHL reliefs — including capital allowances on furniture, full mortgage interest deduction, and Business Asset Disposal Relief on sale. From April 2025, SA income is taxed in the same way as other property income (subject to Section 24 interest restriction for individual landlords). Check current HMRC guidance for transitional provisions if you held FHL properties before April 2025.