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  • Writer's pictureRobin Lawson

Nine Reasons to Consider Serviced Accommodation Investment in North East England

Updated: 2 days ago

What is the attraction of serviced accommodation investment?

Modern block of serviced accommodation investment apartments in Newcastle city center
A stylish block of apartments in Newcastle city centre, offering premium serviced accommodation for business travellers and tourists alike.

Investing in property has always been a smart way to build wealth, and serviced accommodation investment is an especially attractive option. This type of investment is growing in popularity across the UK, particularly in Newcastle and the North East. In this blog, we will explore nine compelling reasons why you should consider serviced accommodation investment in this vibrant region.

1. High Demand for Short-Term Rentals

One of the primary benefits of serviced accommodation investment in Newcastle and the North East is the high demand for short-term rentals. The region attracts a steady flow of business travellers, tourists, and students, all looking for flexible and comfortable accommodation. Serviced accommodations meet these needs perfectly, providing a steady stream of potential tenants.

2. Higher Rental Yields

Compared to traditional buy-to-let properties, serviced accommodation investments often yield higher rental incomes. Short-term rentals can command premium prices, particularly during peak tourist seasons or major local events. This means investors can enjoy higher returns on their investments.

3. Flexibility in Rental Terms

Serviced accommodation offers greater flexibility in rental terms compared to conventional rentals. This flexibility allows property owners to adjust pricing and occupancy terms based on market demand, maximising occupancy rates and profitability. Whether it’s a few nights or several months, serviced accommodation caters to a wide range of rental needs.

4. Attractive to Business Travellers

Newcastle and the North East are thriving business hubs. With numerous conferences, corporate events, and business activities taking place, there is a constant demand for quality accommodation from business travellers. Serviced accommodation investment properties are particularly appealing to this market segment, offering a comfortable and professional environment for their stays.

5. Tourist Appeal

The North East of England is rich in history, culture, and natural beauty, making it a popular destination for tourists. From the historic city of Newcastle to the stunning landscapes of Northumberland, the region attracts visitors year-round. Investing in serviced accommodation in tourist hotspots ensures a high occupancy rate and attractive rental income.

6. Reduced Void Periods

Serviced accommodation investments typically experience lower void periods compared to traditional rentals. The high demand for short-term stays, coupled with the flexibility to adjust rental terms, ensures that properties remain occupied for most of the year. This stability is a significant advantage for investors seeking consistent rental income.

7. Capital Appreciation

Property values in Newcastle and the North East have been on the rise, driven by economic growth and infrastructure development. Investing in serviced accommodation not only provides immediate rental income but also the potential for capital appreciation over time. As the region continues to develop, property values are likely to increase, enhancing the overall return on investment.

8. Professional Management Services

Many investors are deterred by the prospect of managing short-term rentals. However, professional management services are readily available for serviced accommodation investments. These services handle everything from marketing and bookings to cleaning and maintenance, ensuring a hassle-free investment experience for property owners.

9. Tax Benefits

Serviced accommodation investments can offer various tax benefits. In the UK, furnished holiday lets (FHLs) qualify for advantageous tax treatment compared to traditional buy-to-let properties. These benefits include potential capital allowances, reduced rates on rental income, and relief on business rates instead of council tax. It’s advisable to consult with a tax professional to fully understand and maximise these benefits.

Serviced Accommodation Investment

Serviced accommodation investment in Newcastle and the North East offers numerous advantages, from high rental yields and reduced void periods to appealing to both business travellers and tourists. The region’s economic growth, tourist appeal, and professional management options make it an ideal location for property investors seeking to diversify their portfolios.

By investing in serviced accommodation, you can enjoy the benefits of higher rental income, flexibility in rental terms, and potential capital appreciation. Whether you’re a seasoned investor or just starting, the North East of England presents a promising opportunity for serviced accommodation investment. Embrace the potential of this thriving market and start reaping the rewards of your investment today.

For Clarice Carr & Co and our astute investors, serviced accommodation investment in Newcastle and the North East is a strategic move that promises both immediate and long-term benefits. Don’t miss out on the opportunity to capitalise on this growing trend in one of the UK’s most dynamic regions.

Want to know more? Check out our website or get in touch.


Frequently Asked Questions

What is serviced accommodation investment?

Why is Newcastle and the North East an ideal location for serviced accommodation investment?

What are the financial benefits of investing in serviced accommodation?

How does serviced accommodation appeal to business travellers?

Are there any tax benefits associated with serviced accommodation investment?


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