Why Short-Term Rental Can Outperform a Standard AST Tenancy in London

For decades the Assured Shorthold Tenancy has been the default option for London landlords. It is familiar, broadly understood, and most letting agents are configured around it. But familiarity is not the same as performance — and many landlords are leaving meaningful income on the table because they never tested another model.

The income gap, in real numbers

A 1-bedroom flat in Zone 2 that lets on a standard 12-month AST at around £1,800 per month produces £21,600 of gross income per year, less voids, less wear, less agent fees. Operated as a professionally managed short-let with corporate, relocation and project-based guests, the same flat can generate £2,800 – £3,400 per month equivalent — even after platform fees, cleaning and management.

Why the uplift is sustainable

Short-term and medium-term demand in London is not driven by tourists alone. Business travel, relocations, insurance accommodation, contractor stays, medical visitors and international families all need furnished, professionally managed homes — and they are willing to pay for them.

Where it makes most sense

• Properties near business districts, hospitals, universities and major transport hubs
• Furnished 1–3 bedroom flats in zones 1–3
• Owners waiting to sell or refurbish who need flexible exit options
• Investors who want to compare net annual yield across models

If you are unsure whether short-let outperforms AST for your specific property, the honest answer is: it depends on location, layout and finish. A free assessment will tell you what your address could realistically earn — without pressure to commit either way.