Shawbrook Bank has reported that landlords are doubling down on urban flats as prospective buyers revert to city living amidst the return to office working.
The bank’s research found that 28% of UK landlords agreed that flats in cities were the best investment over the last 12 months, and 26% believed they would continue to be so in the next 12 months. With recent data showing that a total of 43% of workers now returning to the office, landlords are identifying the investment opportunities of city properties, Shawbrook said.
Other notable investment opportunities included: semi-detached properties in cities (21%) and student accommodation (18%).
More widely, the number of landlords that agreed that flats in cities were the best investment is even higher in areas such as London (30%), Scotland (39%), and Wales (28%).
Emma Cox, managing director of real estate at Shawbrook Bank, said: “The end of ‘the flight to the countryside’ and resurgence of city living post-pandemic has not gone over landlords’ heads as investment in urban properties has gained strong momentum.
“Whilst the property market still remains turbulent, with high interest rates and inflation impacting buyers, landlords are adapting their strategies to diversify and stay on par with changing trends. Now may also be the right time for professional landlords to partner with a specialist lender, to maximise opportunities available and future-proof businesses against any further market challenges.”
