Busy Summer Expected for the Serviced Accommodation Sector in 2025
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Savills Expects The Serviced Accommodation Sector to Boom This Summer
As the UK heads into the height of summer 2025, many investors have their sights set on the serviced accommodation sector, which is poised for one of its busiest seasons yet, according to expert predictions from Savills.
Recent data and industry analysis signal a surge in demand, investor confidence, and expansion, making serviced apartments a standout option for both travellers and property investors.
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Strong Past Investment Activity Signals Confidence in the Sector
The serviced accommodation sector has seen remarkable investment activity over the past year. In 2024 and the first half of 2025 alone, approximately £500 million worth of deals were completed in the UK.
Even more striking is the pipeline: an additional £700 million in deals is expected to close over the coming months, underscoring sustained momentum and robust investor confidence.
In the Savills 2025 Operational Real Estate Investor Survey, it was revealed that 27% of investors are targeting serviced apartments in 2025 so far, up from 24% in 2024.
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Why are Serviced Apartments a Popular Investment?
There are a number of key benefits that draw investors to this sector. Due to high demand for short-term lets, investors who purchase serviced accommodation can often expect higher yields than they would get with traditional long-term tenancies.
London has long been the epicentre of the serviced accommodation sector, but while demand in the capital remains high, other UK areas are also seeing high demand due to increased tourism. Liverpool is a prime example, with tourism reportedly generating over £6 billion for the Liverpool City Region Economy, and a 21% growth recorded for the sector between 2022 and 2023.
Another benefit of short-term accommodation is its versatility. Investors can expect to see demand from a wide range of groups – from business travellers looking for a more home-like environment than a hotel for the duration of a work trip, to tourists seeking a flexible base to explore the city.
Why Summer 2025 Could be a Big Year For the Sector
There are several reasons why experts expect Summer 2025 to be a potentially record-breaking season for serviced accommodation investments in the UK.
With post-pandemic travel restrictions now a thing of the past, and a reported rise in UK residents choosing to travel across the UK for ‘staycations’ rather than travelling abroad, demand for short-term accommodation could hit new heights.
According to the Sykes Staycation Index for 2025, nearly two-thirds of Brits are planning a staycation in 2025, with over a third enjoying a holiday in the UK as their main break. The amount expected to be spent on UK tourism in 2025 is also higher, with Sykes predicting an average spend of £1,292, up from £1,070 in 2024.
For those planning a UK city break, the North West region could be in for a boost, with Condé Nast Traveller ranking both Manchester and Liverpool in its top choices for 2025.
The outlook for the UK’s serviced accommodation sector is bright. With substantial investment, strategic growth, and a product that meets the needs of today’s travellers, the sector is set for a busy—and potentially transformative—summer.
Interested in investing in serviced accommodation in 2025? Register your interest below and a member of our team will be in touch to discuss your options.
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