In a significant shift in the UK property market, landlords are increasingly focusing on urban flats, driven by the growing trend of workers returning to office environments. Recent research from Shawbrook Bank highlights this change in investment preferences among landlords.
Data indicates that over the last twelve months, 28% of UK landlords recognised city flats as the prime investment choice, surpassing rural accommodations. This trend is expected to continue, with 26% of landlords believing urban flats will remain a top investment in the coming year. This shift aligns with the trend of 43% of workers now resuming office work, spotlighting the investment potential of urban properties.
The research also sheds light on other emerging investment opportunities in the urban landscape. These include semi-detached city properties, favoured by 21% of landlords, and student accommodations, chosen by 18%.
Regionally, the preference for city flats is even more pronounced in specific areas, with 30% of landlords in London, 39% in Scotland, and 28% in Wales considering them the best investment.
Emma Cox, Managing Director of Real Estate at Shawbrook Bank, comments on this trend, noting, “The end of ‘the flight to the countryside’ and resurgence of city living post-pandemic has not gone over landlords’ heads.” She acknowledges the current challenges in the property market, such as high interest rates and inflation, but sees landlords adapting their strategies to these changing trends. Cox also suggests that now might be an opportune time for professional landlords to collaborate with specialist lenders to maximize opportunities and safeguard their businesses against future market fluctuations.