Visitors to Newcastle upon Tyne will be able to rent prestigious penthouses and apartments for as little as one night. Northumbrian Estates (0191 2400 222) is offering a new short-term letting service for more than 200 of its properties across the region in complexes such as the Baltic Quays and The Printworks, with exclusive penthouse suites for four from £300 per night as an alternative to hotel accommodation.

Demand for London short-term apartment lets trebled in the last year, according to a Holiday-Rentals.com spokeswoman. 'Renting a city centre apartment offers a much better deal than a hotel - far more freedom, you come and go as you please, eat and drink any time of day or night, invite your friends round, and feel more of a local than a tourist.'

Options include a ware house conversion near Shakespeare's Globe for six, costing from £120 per day, and a penthouse flat on the South Bank that sleeps five from £110 per day.

'Business travellers have long recognised the cost and comfort advantages of serviced apartments over hotels and now leisure travellers are catching on too,' said Richard Hayes, business development director for apartment specialist Yourstay.com (0800 849 6743), which has properties in London, Paris, New York and Los Angeles. A one-bedroom luxury apartment in Paris, overlooking the Seine, is from £100 a night for up to four people.

'While many holidaymakers are aware of the benefits of hiring a villa when staying overseas, or a cottage for a country break in the UK, many people are unaware of the huge benefits of staying in serviced apartments when holidaying in London,' said a spokeswoman for Cheval Apartments (020 7225 3325), which offers spacious self-contained town houses in Knightsbridge, including one that sleeps four from £50pp per night.