Short Let vs Long Let in London: A Real Comparison (2026)
A real Canary Wharf 2-bed went from £3,375 to £4,303 a month net (+28%). We compare short and long letting in London: income, costs, rules and tax.
Quick answer: For the right London property, professionally managed short and corporate letting can earn noticeably more than a long let. A 2-bed we manage in Canary Wharf went from £3,375 a month on a long let to an average of £4,303 a month net to the owner: +28%, or £11,136 a year. Short letting does bring higher running costs, more regulation and different tax treatment, so the right choice depends on your property.
Every London landlord eventually asks the same question: would my property earn more as a short let? The honest answer is “it depends”, but it does not have to be guesswork. Below we compare the two using real numbers from a flat we manage, then look at the costs, rules and tax points that decide which option is right for you.
A real example: 2-bed apartment, Canary Wharf
This owner previously had the flat on a long let at £3,375 a month. After switching to management by Corporate Stays, combining short stays with longer corporate placements and using dynamic pricing, the property has averaged £4,303 a month net to the owner.
- Long let: £3,375 × 12 = £40,500 a year
- Managed short and corporate let: £4,303 × 12 = £51,636 a year (average net)
- Difference: +£11,136 a year, a 28% increase
In a strong month the gap can be much bigger. In July 2026, a Canary Wharf apartment we manage paid its owner £6,323 net at 81% occupancy, £2,823 more than its previous long-let rent.
What drives the difference?
- Dynamic pricing. Nightly rates move with demand, events and seasons, so no two nights are priced the same.
- Occupancy. Our portfolio averages 85%+ occupancy, helped by mixing short stays with longer corporate bookings.
- Reviews. Consistently high ratings (4.8 on Airbnb and 9/10 on Booking.com across our portfolio) push listings up search results and support higher rates.
- Cleaning quality. Our own in-house housekeeping team cleans every turnover, which protects reviews and the property.
The costs of short letting
Short letting earns more, but it also costs more to run. Make sure any comparison includes:
- Furnishing and equipping the property to a guest-ready standard
- Cleaning, linen and consumables between stays
- Utilities, Wi-Fi and TV subscriptions, which a long-let tenant would usually pay
- Platform commissions and payment fees
- Specialist short-let insurance
- Council tax or business rates, depending on how the property is used
- A management fee, if you use a professional manager
The rules: 90 nights, leases and the Renters’ Rights Act
In London, whole homes can be let as short stays for up to 90 nights a year without planning permission. Our 90-night rule guide explains how it works and how a hybrid strategy keeps a property earning all year. You will also need permission under your lease and from your mortgage lender.
Long letting has its own new rules. Since 1 May 2026 tenancies are periodic, Section 21 has ended and rent can only rise once a year. Read our Renters’ Rights Act guide for the details.
Tax: the end of furnished holiday lettings
Until April 2025, qualifying short lets could be taxed as furnished holiday lettings (FHLs), with more generous treatment. The FHL regime was abolished from April 2025. Short-let income is now taxed like other property income: individuals get mortgage interest relief only as a basic-rate tax credit, new spending on furniture is relieved through replacement of domestic items relief, and FHL-specific capital gains reliefs no longer apply. Speak to an accountant about your own position.
Which is right for you?
- Short or corporate let usually suits well-located London flats and houses, owners who want higher income and flexibility, and properties that can be presented to a high standard.
- A long let may suit owners who want the simplest possible arrangement and are comfortable with the new periodic tenancy rules.
- Guaranteed rent sits in between: a fixed monthly income with someone else carrying the occupancy risk.
Frequently asked questions
Is short letting more profitable than long letting in London?
Often, in the right location and with good management. In our Canary Wharf example the owner moved from £3,375 a month on a long let to an average of £4,303 a month net, a 28% increase. Results depend on the property, area, season and costs, so get an estimate for your own property.
What costs come with short letting?
Furnishing and equipping the property, professional cleaning and linen between stays, utilities, Wi-Fi and streaming, platform fees, insurance and a management fee if you use a manager. Council tax or business rates may also apply.
How does the 90-night rule affect the numbers?
In London, whole-home short stays are limited to 90 nights a year without planning permission. The strongest returns come from using those nights in peak season and filling the rest of the year with longer corporate placements.
Did the tax rules change for holiday lets?
Yes. The furnished holiday lettings regime was abolished from April 2025. Short-let income is now taxed under the same rules as other property income, including the restriction on mortgage interest relief for individuals.
Can I switch back to a long let later?
Yes. Short stays and company lets are usually set up so they do not create a long-term assured tenancy, which makes it easier to change strategy, refurbish or sell later. Take advice on how longer stays are contracted for your property.
Want to see the numbers for your own property? Get a free income estimate comparing short, corporate and long letting, or WhatsApp us.
This guide is general information, not legal or tax advice. Rules change, so check the latest GOV.UK guidance or speak to a solicitor or accountant before making decisions about your property. Last reviewed October 2026.
