The UK corporate housing market has shrunk at a compound annual rate of 1.5% over the last five years, landing at an estimated £1.3 billion in 2025. That figure tells you something important right now: the industry is smaller than it was, but it’s also stabilising after a brutal period. I’ve been watching this sector for a while, and what I keep noticing is that the old rules about what corporate tenants want no longer apply. The pandemic didn’t just pause travel — it permanently changed the expectations of the people who stay in these properties.
The contraction during 2020-21 was severe — international travel ground to a halt, and occupancy rates collapsed. Revenue has rebounded since restrictions lifted, but the industry hasn’t returned to pre-pandemic levels yet. What’s more interesting is what’s happening beneath the surface. Corporate guests are no longer willing to share apartments. They want separate work desks, dedicated dining tables, and co-working areas. The old model of squeezing two travellers into a one-bedroom flat with a fold-out sofa is dying. If you’re thinking about entering this space — whether as a landlord leasing to a provider or as an operator yourself — you need to understand what’s actually driving demand now. Here’s what you actually need to know.
One of the first things I’d do before committing to any property is get clear on the legal framework. A property lawyer can help you navigate lease terms, service charge obligations, and the upcoming ban on upward-only rent reviews — which I’ll cover in detail later. And if you’re buying land to develop, you’ll want to read up on planning permission pitfalls before you sign anything.
What Corporate Housing Actually Means in Practice
The most important thing to understand is that corporate housing isn’t the same as standard buy-to-let. You’re not renting to a family for two years. You’re providing fully furnished, short-to-medium-term accommodation for business travellers. The providers — companies like Staycity, edyn, and London Letting & Management — lease apartments from landlords, fit them out with furniture and appliances, and sublet them to corporate clients. The largest player, Staycity, holds a market share of 112.8 in 2025 with revenue of £112.8 million. That tells you the sector is concentrated, but there’s still room for smaller operators who get the details right.
What I’d flag here is that the product mix matters more than you’d think. Aparthotel suites are the largest segment, but the real growth is in standalone serviced apartments with proper separation between living, working, and sleeping areas. If you’re buying a property to lease to a corporate housing provider, a one-bedroom flat with a combined living-dining area won’t cut it anymore. Guests want a dedicated desk in a separate room, not a laptop balanced on a coffee table. That’s a practical shift that affects everything from floorplan selection to furniture budgets. For more on choosing the right location, take a look at essential transport links — proximity to stations and airports is a major factor for corporate tenants.
Why the Old Model No Longer Works
The biggest change I’ve seen is that corporate guests are no longer willing to share apartments. That might sound minor, but it fundamentally changes the economics. Previously, a provider could rent a two-bedroom flat, put two employees in separate rooms, and double the yield. Now, each guest expects their own unit. That means lower density per property and higher fit-out costs per square metre. The industry has responded by focusing on aparthotel suites and one-bedroom serviced apartments, but the shift has squeezed margins.
Here’s a scenario to make it concrete. Imagine you own a three-bedroom flat in a commuter belt town near London. Under the old model, a corporate housing provider might have taken it for three employees on a six-month project. Today, that same provider would rather take three separate one-bedroom apartments in the same building — even if the total rent is slightly higher — because each guest wants privacy and a dedicated workspace. If your property doesn’t offer that separation, you’re competing in a smaller pool of demand.
The UK was voted the second most attractive global destination for international investment according to PwC’s 28th Annual Global CEO Survey. That’s good news for the long term. More international companies setting up UK operations means more business travellers needing accommodation. But in the short term, inflationary pressures are constraining corporate budgets, and international travel hasn’t fully recovered to pre-pandemic levels. The market is projected to grow over the next five years, but it won’t be a straight line up.
What I’d do in this environment is focus on properties that can deliver what the market now demands. A one-bedroom flat with a proper desk area and a separate dining table will outperform a two-bedroom shared layout every time. And if you’re looking at a development site, consider whether the floorplans can accommodate that separation. A real estate lawyer can review your purchase agreement and flag any restrictive covenants that might limit how you use or sublet the property.
Where People Go Wrong in Corporate Housing
Most of the mistakes I see come down to treating corporate housing like standard residential lettings. It’s not. The expectations, the legal framework, and the economics are all different. Here are the four most common errors I’ve seen — and how to avoid them.
Ignoring the Shift in Guest Expectations
The biggest mistake is buying or leasing a property without checking whether it meets current demand. As I mentioned, guests want private apartments with dedicated workspaces. If you’re offering a shared flat or a studio without a proper desk, you’re already behind. The data backs this up: the industry has shrunk by 1.5% annually over five years, and part of that is because the existing stock doesn’t match what guests want. Providers are constantly entering the industry by renting apartments from landlords and fitting them out, but they’re selective. They won’t take a property that doesn’t work for their clients.
Overlooking the Upcoming Ban on Upward-Only Rent Reviews
The English Devolution and Community Empowerment Bill, published on 10 July 2025, includes proposals to prohibit upward-only rent reviews in new and renewal commercial leases. If enacted, this will be a major shift. An upward-only rent review means the rent can only go up or stay the same — it can never decrease. The ban would make such clauses unenforceable. That’s good news for tenants, but it changes the financial model for landlords who relied on guaranteed annual increases. The Bill is at the committee stage in the House of Lords and could become law in late 2026 or 2027. If you’re negotiating a lease now, you need to factor in that the terms might look very different in two years.
Misunderstanding Service Charge Obligations
The updated RICS Professional Standard on service charges in commercial property took effect on 31 December 2025. It’s compulsory for all RICS-accredited professionals. While it doesn’t override lease terms, it sets industry benchmarks and is a vital reference point for negotiations and dispute resolution. I’ve seen landlords get caught out by not understanding what counts as a recoverable service charge and what doesn’t. If you’re leasing a property to a corporate housing provider, make sure your lease clearly defines the service charge scope. A tenant landlord lawyer can help you draft terms that protect your position while staying compliant with the new standard.
Failing to Plan for Security of Tenure Changes
The Law Commission completed its phase 1 consultation on 19 February 2025 and provisionally concluded that the minimum six-month term for business tenancies protected by the Landlord and Tenant Act 1954 should be increased. The second consultation is likely to propose a minimum of two years. That’s a significant change. If you’re a landlord, it means tenants could have stronger rights to stay beyond the contractual term. If you’re a tenant, it means more certainty but less flexibility. The phase 2 consultation will also consider reforms to the contracting-out procedure, grounds for possession, and compensation when a tenancy is terminated. This is still in consultation, but it’s moving fast.
→ Scroll right to see all columns
| Reform | Current Status | Expected Impact |
|---|---|---|
| Ban on upward-only rent reviews | Bill in committee stage, House of Lords | Rents can decrease at review; affects new and renewal leases |
| Security of tenure minimum term | Phase 2 consultation pending | Likely increase from 6 months to 2 years |
| Service charge RICS code | Effective 31 December 2025 | Compulsory for RICS professionals; sets negotiation benchmarks |
| Assets of Community Value reforms | Included in same Bill | Wider definition; ‘preferred buyer’ status for community groups |
How to Navigate Corporate Housing Land in the UK
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If you’re serious about entering or expanding in the corporate housing market, here’s a practical guide to getting it right. These aren’t theoretical suggestions — they’re based on what the data and the regulatory landscape are telling us right now.
Choose the Right Property Layout
Start with the floorplan. A one-bedroom apartment with a separate living area that can accommodate a desk and a dining table is the sweet spot. Avoid studios and shared layouts unless you’re targeting a very specific niche. The market data is clear: guests want separation between work, sleep, and living spaces. If you’re buying off-plan, ask the developer whether the layout can accommodate a dedicated work zone. If you’re retrofitting an existing property, consider whether you can reconfigure the space. A simple room divider or a built-in desk nook can make a surprising difference. For more on choosing the right plot, read tips for buying your dream residential lot — the same principles apply to selecting a property for corporate housing.
Get the Legal Framework Right Early
This is where most people slip up. The regulatory environment is changing fast, and you need professional advice before you commit. The ban on upward-only rent reviews, the new RICS service charge code, and the potential increase in security of tenure minimum terms all affect your bottom line. Don’t rely on a standard lease template. Have a business lawyer review your agreements and flag any clauses that could become problematic under the new rules. If you’re leasing to a corporate housing provider, negotiate the service charge provisions explicitly. The RICS code sets benchmarks, but your lease still governs what you can recover.
Fit Out for the Modern Corporate Guest
Furniture and appliances matter more than you’d think. A corporate guest who’s staying for three months expects a proper workspace, not a kitchen table. Invest in a good desk, an ergonomic chair, and reliable Wi-Fi. A separate dining table is now a baseline expectation, not a luxury. Co-working areas in the building are also in high demand due to increased remote working. If your property is in a building with shared amenities, make sure those spaces are well-maintained. If it’s a standalone unit, consider whether the living area can double as a co-working space. A security camera can also be a worthwhile addition — corporate guests often want to know the property is monitored, especially if they’re travelling with expensive equipment.
Plan for the Future-Phase Changes
The Assets of Community Value (ACV) reforms in the same Bill are worth watching. The definition of community value would be widened to include properties that contribute to a local community’s economic wellbeing. A new category of “sporting asset of community value” would capture outdoor sporting grounds. And community groups would gain a ‘preferred buyer’ status — if they offer a valuer-determined market value, property owners could be prevented from selling to others for up to 18 months. If your property is in an area with active community groups, this could affect your exit strategy. The reforms also give community nominators new rights to request a review and appeal to the First-tier Tribunal. This is still progressing through Parliament, but it’s likely to become law in 2026 or 2027.
- 1Audit your property against current demandCheck whether your floorplan offers a dedicated workspace and separate dining area. If not, consider reconfiguration or look for a different property.
- 2Review your lease termsHave a lawyer check for upward-only rent review clauses, service charge provisions, and security of tenure terms. Factor in the upcoming regulatory changes.
- 3Fit out for the modern guestInvest in a proper desk, ergonomic chair, reliable Wi-Fi, and a separate dining table. Consider adding a security camera for guest peace of mind.
- 4Monitor the legislative timelineThe ban on upward-only rent reviews and ACV reforms are progressing through Parliament. Stay informed so you can adjust your strategy before they take effect.
Frequently Asked Questions
Can I still make money in corporate housing if I own a shared apartment? ▾
What happens if the ban on upward-only rent reviews becomes law while my lease is active? ▾
Do I need to follow the new RICS service charge code if I’m not a RICS professional? ▾
How do the Assets of Community Value reforms affect my ability to sell a corporate housing property? ▾
Is London still the best location for corporate housing investment? ▾
Sources and Further Reading
Key considerations for buying property with easements — If you’re buying land for development, understanding easements is essential. This guide covers what they are, how they affect your plans, and what to check before you buy.
Corporate Housing in the UK – Market Research Report. IBISWorld, 2025.
State of the Estate in 2024/25. UK Government, 2026.
UK Real Estate Sector: 2026 and Beyond. Charles Russell Speechlys, 2026.
