Why More UK Landlords Are Turning to Short Lets

Bright period living room with pale blue walls, herringbone parquet floor and a cream corner sofa

A rental market in transition

For decades, the standard buy-to-let model was simple: find a tenant, sign a 12-month contract, collect the rent. That model is changing fast. A growing number of UK landlords are now letting their properties by the night or week instead, and 2026 has accelerated the trend.

Here's why.

Why landlords are making the switch

1. The end of Section 21

The Renters' Rights Act 2025 abolished no-fault evictions in England from 1 May 2026. Fixed-term tenancies are gone too: every assured tenancy is now rolling, and regaining possession means proving a specific legal ground under Section 8. Short lets sit outside this regime, so owners keep full control of who stays and for how long.

2. Stronger income potential

Demand for short stays keeps climbing. ONS data shows 93.8 million guest nights booked through UK short-term rental platforms in the year to June 2025, up 10.2%. Meanwhile, private rents rose just 3.5% in the year to February 2026. In the right location, nightly rates can comfortably outperform a monthly rent.

3. Flexibility

A short let isn't locked into one tenant for an open-ended period. Owners can block out dates for personal use, pause bookings for refurbishment, or sell with vacant possession without a lengthy legal process.

4. Pressure on traditional buy-to-let

Since Section 24 restricted mortgage interest relief to a basic-rate tax credit, many higher-rate landlords have seen long-let profits squeezed. Add rising compliance costs and the new rules, and the numbers simply work less well than they used to.

5. A better-kept property

Short-let homes are cleaned and checked after every stay. Issues get spotted and fixed early, rather than discovered at the end of a long tenancy.

The catch: it's a hospitality business

Short letting isn't passive income. It means guest messaging, cleaning turnarounds, linen, pricing, reviews and compliance. Landlords also need lender consent, the right insurance and fire-safety standards in place, and must follow local rules such as London's 90-night cap. A national registration scheme and a new planning use class for short lets have been announced for England, so the rules will keep evolving.

That's where professional management comes in. At Vass & Co, we handle the day-to-day running of your property, from listing and pricing to guest care and cleaning, so you get the returns without the workload. Get in touch to find out what your property could earn.