Bromley Buy-to-Let Yields 5.1%, Holiday Lets Cannot Compete

Estimates for a typical 3-bedroom house. Figures are modelled from market data; not guaranteed outcomes.

⚠ Holiday let figures reflect the 90-night annual cap that applies across all London boroughs. Exceeding 90 nights requires planning permission from Bromley Council, which is rarely granted for residential properties.

Buy-to-let generates more than double the gross revenue of holiday letting in Bromley. Even before accounting for the higher operating costs of holiday lets, the 90-night cap makes the comparison one-sided.

Holiday Lets Cannot Mathematically Beat Buy-to-Let in Bromley

The maths rules out holiday letting as a competitive strategy here. Even at 100% occupancy across all 90 available nights, a holiday let at £236 per night would gross roughly £19,202 still well below the approximately £28,740 annual rent from buy-to-let. The break-even occupancy would need to exceed 100%, which is obviously impossible.

This is not a close call that depends on execution. The 90-night cap creates a hard ceiling on holiday let revenue that falls short of buy-to-let income regardless of how well you manage the property. At the borough average occupancy of 62%, holiday let grosses approximately £13,244, less than half the buy-to-let figure.

Occupancy sensitivity reinforces this conclusion:

• At 47% occupancy: approximately £10,055 gross (roughly a third of buy-to-let rent)
• At 62% occupancy (borough average): approximately £13,244 gross
• At 72% occupancy: approximately £15,371 gross (still roughly half of buy-to-let)

Holiday let also carries higher costs: 15.5% Airbnb host fees, cleaning at roughly £65 per turnover, furnished property insurance at around £2,109 annually, and upfront furnishing costs of approximately £13,500. These costs widen the gap further.

Yields Vary Across Bromley's Postcodes

Bromley is a large borough spanning leafy suburban areas and more urban centres, and gross yields differ meaningfully by postcode. The spread is not dramatic, but it is enough to shift a leveraged investor's cash flow position.

The TN16 area on the borough's southern fringe delivers the strongest yield at 5.6%, combining relatively lower entry prices with solid rental demand. BR2 and BR3 both come in at 5.2%, though BR3's higher price point (around £476,715) brings higher absolute rent. BR5, the cheapest entry point at £544,885, also yields 5.2%.

These are averages per postcode area. The dashboard breaks it down further, by bedroom count and property type, so you can model your specific property.

Bromley's 90-Night Cap Makes the Regulatory Question Simple

London's 90-day rule, introduced under the Deregulation Act 2015, limits holiday letting to 90 nights per calendar year in all London boroughs without planning permission. This is the single biggest factor shaping the investment decision in Bromley.

Obtaining planning permission for a change of use to exceed 90 nights is theoretically possible but practically difficult. Bromley Council treats it as a material change of use from residential (C3) to temporary sleeping accommodation (sui generis), requiring a full planning application. Approval is unlikely in most residential areas.

For investors, this means holiday letting in Bromley is legal but structurally capped. You can operate for up to 90 nights, but the revenue ceiling makes it uncompetitive with buy-to-let. Platforms like Airbnb automatically block bookings beyond 90 nights for London addresses, adding enforcement to the regulatory cap.

There is no separate permit fee for operating within the 90-night limit; the restriction applies automatically. However, investors should be aware that council tax still applies (you cannot claim business rates relief unless the property is available for at least 252 nights and actually let for at least 182 nights per year), and any holiday let income must be declared for income tax purposes.

Operating Costs Take a Larger Bite from Holiday Let Revenue in Bromley

Buy-to-let costs in Bromley are relatively predictable: a letting agent typically charges around 10% of rent, landlord insurance runs approximately £856 per year, and maintenance averages around £4,371 annually. Council tax at around 0.5% of the property value adds roughly £2,838 per year (though tenants typically cover this for buy-to-let).

Holiday let costs are significantly higher in both proportion and complexity. The Airbnb host fee is 15.5% of each booking. Professional management runs approximately 18% of revenue. Insurance for furnished holiday lets costs around £2,109 per year. You are responsible for utilities (roughly £2,088 annually), cleaning between guests at approximately £65 per turnover, and the upfront cost of furnishing the property to a lettable standard (estimated at £13,500).

On a gross revenue of around £13,244 from holiday letting, these costs consume the majority of the income. Buy-to-let's lower cost base, combined with more than double the gross revenue, makes the net income comparison even more lopsided than the headline figures suggest.

After Tax, Buy-to-Let Remains the Clear Winner in Bromley

The Furnished Holiday Lettings (FHL) tax advantage has been removed, making the financial comparison between holiday letting and buy-to-let more important than ever. Since April 2025, holiday let income and buy-to-let income are taxed identically; there is no separate favourable regime for furnished holiday lets.

Mortgage interest relief is restricted to a 20% basic rate tax credit for both strategies. Higher-rate taxpayers will pay income tax on the full rental profit, receiving only a basic rate credit for mortgage interest. This is worth factoring into your cash flow projections, particularly in a borough like Bromley where property prices (and therefore mortgage amounts) are substantial.

Stamp duty includes a 5% surcharge on additional residential properties (from October 2024). On a property priced at around £567,623, this adds a significant sum to acquisition costs. The exact amount depends on the current banded rates, so check with your solicitor before committing.

Capital gains tax on residential property disposal is 18% for basic-rate taxpayers and 24% for higher-rate taxpayers (from October 2024). The annual CGT allowance has been reduced substantially in recent years, meaning more of any gain will be taxable. Allowable expenses (repairs, insurance, letting agent fees, ground rent for leasehold properties) can be deducted from rental income under both strategies.

Bromley Offers Better Value Than Inner London with Comparable Yields

Comparison of key investment metrics.

Bromley sits in a favourable position for London investors. Entry prices are roughly £567,623, about 9% below the London average of £680,485, while rents are only marginally lower. This translates to a gross yield of 5.1%, comfortably above the London average of 4.4%.

Compared to the UK as a whole, Bromley's prices are more than double the national median of £288,960, and its yield of 5.1% falls below the national average of 5.0%. This is the premium London tax: you pay more per pound of rental income, but you gain exposure to one of the world's most resilient property markets with strong long-term appreciation potential.

Other outer London boroughs face the same 90-night holiday let restriction, so this is not a Bromley-specific disadvantage. The investment decision is really about whether Bromley's combination of lower entry price and above-average London yield justifies the premium over non-London alternatives. For more context on how data sources feed into these comparisons, see our methodology pages.

Investment Bottom Line for Bromley

Buy-to-let is the only viable strategy for income-focused investors in Bromley. The 90-night cap creates an insurmountable revenue ceiling for holiday lets, and even perfect execution cannot close the gap. The FHL tax abolition removes the last potential argument for holiday letting here.

What makes Bromley interesting as a buy-to-let market is its position in the London landscape: lower entry prices than most boroughs, yields above the London average, and the structural demand that comes with good transport links to central London. The borough spans 57 postcode areas with yields ranging from 5.2% to 5.6%, so location within Bromley matters.

Cash flow investors will find Bromley's 5.1% gross yield workable, though not spectacular. After mortgage interest, management, and maintenance, margins are tight at high leverage. Appreciation-focused investors benefit from outer London's growth dynamics and the borough's ongoing regeneration. Holiday let operators should look outside London entirely, where no night cap applies. Highly leveraged investors need to model carefully; the yield covers a standard mortgage, but leaves limited buffer for voids or unexpected costs.

Explore Bromley's full postcode-level data in the dashboard to model your specific scenario across different property types and bedroom counts. You can also review our market score methodology for details on how we weight each factor.

Data reflects market conditions as of April 2026.

This information is for educational purposes only and should not be considered financial or legal advice. Regulations and market conditions change frequently. Verify current rules with local authorities before making investment decisions.