With the Renters’ Rights Bill progressing quickly through Parliament, we may see the abolition of Section 21 ‘no-fault’ evictions and a pivot away from Assured Shorthold Tenancy, with a single system of periodic tenancies proposed to take its place, sooner than expected. With a level of uncertainty and reduced confidence in the future of the rental market, there is no better time for property investors to be proactive and diversify their portfolios.

Considering this, we are confident that the demand from developers aiming to take advantage of short-term rentals (STRs), such as serviced apartments, holiday lets, and Airbnb’s, will increase rapidly. The reason? On average, these types of properties incur a much higher rental yield than typical buy-to-Let properties. Not forgetting investors can adjust pricing dynamically based on demand, maximising profits during peak seasons. For instance, did you know holiday let owners earned around £24,600 in income in 2024, a rise from £24,500 in 2023.

However, as with any investment, there are a few factors that need to be carefully considered before moving forward with a STR purchase. With demand for STRs fluctuating throughout the year, it’s important to identify areas that will generate consistent visitor traffic. The Cotswolds, Cumbria and the Lake District, Dorset, Cornwall, and the Peak District are all fantastic examples of areas with high demand for flexible accommodation options that will allow investors to capitalise on the higher per-night rate. For example, the average occupancy rate for properties in Cornwall during the summer of 2024 was 83%.

It’s also wise to be aware of evolving regulations, such as the National Register for Short-Term Lets Scheme. This, however, presents an opportunity in itself, as current STR conversions can be future-proofed over time without regulatory restrictions hindering investors. This scheme also promises to provide greater protection to both tenants and investors, which will further promote the success of STRs.

As you’d expect, with any lucrative investment opportunity, it’s crucial to act quickly to secure the deal before someone else beats you to it. This is where we come in. With our newly introduced STR product, investors can quickly secure funding. With investors limited in their financing options to just holiday let mortgages, our short-term bridging finance option will provide the speed and flexibility to move quickly to capitalise on investment opportunities. Whether the property is income-producing or needs time to get to that stage, we can provide a facility of up to 75% LTV* and have the capability of turning things around extremely quickly – we recently completed a deal in just 4 working days!

With residential, semi-commercial, or commercial properties all considered, investors are able to seize these emerging opportunities on all asset types. The use of instant and desktop valuations helps accelerate approvals, while features like no upfront legal undertakings and dual representation streamline the borrowing process, reducing delays and legal costs.

In an environment where timing and adaptability are everything, our team provides the means for investors ready to pivot from traditional buy-to-let or HMO models to diversify and grow their portfolios with STR opportunities.