Serviced Accommodation Forecast: 2025 Trends – Growth Areas Like Morecambe & Preston
The serviced accommodation (SA) market has evolved significantly in recent years—shaped by pandemic-era staycations, the rise of remote work, and a growing demand for flexible travel and corporate housing. Now in 2025, SA continues to outperform traditional buy-to-let in many areas, offering higher nightly income, increased occupancy, and short-term agility.
But this is no longer just a trend isolated to tourist cities or London fringes. Thanks to infrastructure investment, regional regeneration, and destination branding, a new wave of growth towns—like Morecambe and Preston—is redefining the UK SA map.
In this article, we forecast key 2025 trends in the serviced accommodation space and explore high-potential locations that investors should be watching.
2025 Serviced Accommodation Landscape: The Macro View
Despite concerns over rising costs and regulatory changes, serviced accommodation is proving resilient and adaptive. In 2025, key factors are driving demand:
Shift from leisure to blended travel (bleisure and workcations)
Corporate travel recovery post-COVID, especially in construction, energy, and healthcare
Tourism infrastructure projects boosting occupancy in regional towns
Lack of quality hotel stock in regeneration zones, opening the door for SA
Platforms like Booking.com and Airbnb now report record levels of UK demand, particularly in markets that offer value, walkability, and local charm—not just big-city convenience.
Key Serviced Accommodation Trends for 2025
1. Shift to Mid-Term “Hybrid Stays”
Properties optimised for 2–12 week stays are outperforming nightly rentals in many regional towns, especially among contractors, remote teams, and NHS or energy-sector staff.
2. Rise of “Second Tier” Towns
Locations previously overlooked—like Morecambe, Preston, Rotherham, and Hull—are gaining traction due to low operating costs, high yields, and regeneration-fuelled tourism.
3. Digital Nomads Go Regional
As more professionals adopt hybrid lifestyles, smaller towns with strong Wi-Fi, coffee culture, and transport links are attracting longer digital stays.
4. Corporate Travel is Back
Infrastructure and energy projects across the North West, Midlands, and Scotland are bringing back predictable, reliable mid-week bookings.
Where to Watch: Emerging SA Hotspots in 2025
Let’s break down several key areas poised for short- and mid-term let growth, based on local regeneration, infrastructure, and demand patterns.
🔸Morecambe – Eden Project North Ignites Tourism Boom
In many ways, Morecambe is the poster child of the 2025 SA market. The upcoming Eden Project North, set to open in 2026, is already drawing attention from developers, investors, and national media. With over 750,000 expected visitors annually, Morecambe is set for a hospitality renaissance—yet its current hotel stock is limited and outdated.
For SA landlords, this represents a golden opportunity. Smart investors are already securing town-centre flats, seafront units, and nearby houses to convert into premium short lets. Seasonal demand will rise sharply, but mid-week and off-season occupancy is expected to follow, driven by eco-tourism, events, and project workers.
Average property price (2025): ~£160,000
Average nightly rate (forecast): £95–£130
Projected occupancy (2025–26): 68–75%
Key guest types: Tourists, families, eco-event attendees, project contractors
Verdict: A top-tier pick for cash buyers and yield-focused landlords.
🔸Preston – The Quiet Performer with Corporate Demand
Preston’s SA market has grown steadily rather than explosively, but 2025 is expected to bring new momentum. A combination of university-related demand, NHS staff mobility, and infrastructure-led development (particularly linked to the M6 corridor) is making Preston a dark horse in the North West SA landscape.
Preston is home to multiple public-sector employers, major education facilities, and a growing digital economy. It also benefits from good transport links to Manchester, Lancaster, and Blackpool. While not a tourist hotspot, its weekday occupancy is among the highest in Lancashire, with a consistent stream of bookings from business travellers, relocation guests, and hybrid workers.
Average property price: £140,000–£180,000
Nightly rate: £80–£110
Average occupancy: 65–72%
Ideal units: Central 1-2 bed flats, hospital-adjacent homes
Verdict: Under-the-radar SA gem with year-round weekday demand.
🔸Lytham St Annes – Premium Stays for Affluent Guests
Just a few miles from Blackpool but worlds apart in feel, Lytham St Annes caters to a higher-end guest demographic. Golf tourism, festivals, and a wealth of local restaurants make it a favourite for couples, retirees, and families seeking a more refined coastal break.
Serviced apartments and stylish holiday homes perform particularly well here, especially when managed to a high standard. With competition limited to legacy B&Bs and boutique hotels, professional operators can quickly stand out. Lytham is less seasonal than similar resorts, with solid spring-autumn occupancy, especially during the popular Lytham Festival season.
Average property price: £220,000–£260,000
Nightly rate: £110–£160
Peak occupancy: 75–85%
Guest profile: Affluent staycationers, golf tourists, festivalgoers
Verdict: Premium SA returns for high-spec units in a timeless seaside setting.
🔸Hull – Urban SA with High Yields
Hull’s tourism image has improved significantly since its UK City of Culture 2017 title, and it now boasts a growing heritage and leisure scene. Add in ongoing regeneration around the Fruit Market and marina, and you have a city with rising appeal for both domestic travellers and project workers.
What makes Hull stand out is affordability. With some of the lowest entry points in the North, it’s easy to achieve high ROI from small-scale SA units. Contractors and short-term business lets dominate midweek occupancy, while event-driven tourism helps plug weekend gaps.
Average property price: ~£130,000
Nightly rate: £75–£95
Yields: 10–12% (gross)
Typical guests: Contractors, NHS staff, weekend city break tourists
Verdict: Strong numbers, low costs—ideal for scaling a portfolio.
🔸North Wales (Anglesey, Llandudno, Conwy) – Nature-Fuelled SA Demand
Scenic locations across North Wales continue to attract families, walkers, cyclists, and eco-tourists—especially those priced out of the Lake District or Devon. The SA market here remains highly seasonal, but extremely profitable for those who manage peak pricing effectively and provide family or pet-friendly accommodation.
Anglesey benefits from ferry links, nature trails, and the upcoming Holyhead Freeport, which could unlock future worker stays. Towns like Llandudno and Conwy thrive in summer but see enough off-season events and weekenders to support sustained letting.
Average property price: £170,000–£230,000
Nightly rate: £90–£140
Peak occupancy: 80–90% (May–September)
Tips: Focus on self-catering units with outdoor space or sea views
Verdict: Seasonal but lucrative—perfect for lifestyle investors and holiday-let pros.
The Future of SA in 2025 and Beyond
As we look ahead, serviced accommodation is set to become more professionalised, with an emphasis on:
Tech integration (remote check-ins, guest experience apps)
Branding & loyalty in regional towns
Compliance and licensing (especially in Scotland and Wales)
A rise in hybrid operator models combining nightly, weekly, and monthly strategies
Final Word: SA Isn’t Slowing Down—It’s Spreading Out
While traditional SA hotspots still perform well, 2025 is clearly the year of the regional rise. Markets like Morecambe, Preston, Hull, and parts of North Wales are demonstrating that with the right product, pricing, and positioning, you don’t need to be in a city to achieve double-digit returns.
Want to Explore Serviced Accommodation Opportunities?
At Residential Estates, we specialise in sourcing, setting up, and managing high-performing SA units across the UK. Whether you're a first-time landlord or an experienced investor scaling a regional portfolio, we can help you find the right location and model to match your goals.
Book a consultation today and tap into the most promising SA markets of 2025.
