Landlords put their money on one-bedroom flats as best investment

The study carried out by the short-term loan specialist found that 25% of UK landlords saw one-bedroom flats as the most attractive property to invest in, while 24% thought student accommodation in university towns and cities would provide the best returns.

Some 22% believe two-bedroom flats are the best option.

Amicus chief executive John Jenkins said a growing number of professional landlords are turning to short-term finance to help them progress on the property ladder.

“Despite some uncertainty in the consumer buy-to-let sector as a result of changes to Stamp Duty charges, we’re seeing a sustained and growing appetite for short-term property finance driven by the tightening of mainstream bank underwriting requirements and the inability of some lenders to act sufficiently quickly to respond to demand,” said Jenkins.

In terms of rental yields, 28% of landlords surveyed thought two-bedroom flats would provide the best returns, followed by 25% who opted for student accommodation and 21% went for three-bed flats.

“The findings show flats are the clear winners over houses and maisonettes for both capital growth and rental yields and this is reflected in our own experience in servicing professional landlords’ short-term borrowing requirements,” said Jenkins.