Changing work practices and the increased globalisation of business are increasingly requiring that business professionals work away from home on a short to medium term basis. In addition greater international leisure travel and an increasing trend to take extended breaks between jobs, sabbaticals and working-holidays are also impacting on the demand for temporary accommodation. Up until relatively recently their have been few alternatives to hotels for business or leisure travellers seeking longer-term accommodation. However, a serviced apartment sector is now emerging in the UK. Serviced apartments are typically located in city centre locations, often near the business core. They offer a range of accommodation standards, although are usually equivalent to a three to five star hotel. The apartments offer self-contained accommodation and guests are able to select the level of service they require. As in the serviced office market, income is derived from both rent and services. While serviced apartments are well established in the US and the Far East, the sector is in an embryoic stage in the UK. The current supply is dominated by higher-end accommodation, with corporates providing the core area of demand. However experience in other countries suggests that the scale and profile of the market may be considerably broader. This paper details the current profile of the serviced apartment sector in the UK. The research then looks at both the scale of the market and investigates current and future drivers of demand. The findings are based on a survey of operators of this type of accommodation and a range of occupiers. The paper also investigates the factors influencing supply of serviced apartments. This includes the impact of planning restrictions, in particular the 90-day rule, which dictates that private rentals must last at least 90 days, and the routes operators have adopted to overcome this constraint. The relative value of this use compared to potential alternatives, including commercial uses is also considered, particularly in light of the significance of services-derived income.