According to Shawbrook’s internal data, there has been a 14% rise in professional landlords looking to buy MUFBs in 2024 compared to 2023.

The internal data also showed a 37% growth in the value of mortgages that landlords are securing to support MUFB purchases.

The firm said this showed that landlords were increasingly “targeting higher-value blocks while still maintaining good leverage ratios”.

Shawbrook said that Scotland was a popular location for landlords looking to invest in MUFBs, with mortgages agreed in principle doubling 3.1% to 7.4%.

The North West was also a popular region, with mortgages agreed in principle rising from 5.3% to 7.5% year-on-year.

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The lender said that this was “reflective of landlords looking to grow their portfolios, as MUFBs generate both diversified income streams and higher yields than a single unit can provide”.

Daryl Norkett, director of real estate proposition at Shawbrook, said: “MUFBs are another attractive option for professional landlords looking to diversify their portfolios. MUFBs typically provide high rental yields, are in high demand, and tend to have a lower risk for void periods; all of which make them a popular choice for landlords.

“In fact, we’re seeing this trend towards higher-yielding property types across the board with landlords increasingly considering property types like houses in multiple occupation (HMOs) and semi commercial properties, which are similarly seeing a rise in activity due to their ability to provide a higher rental yield and shield against any economic challenges.

“Those interested in finding out more about MUFBs or how they can further diversify their portfolio should get in touch with a broker to better understand their options.”