Professional landlords are increasingly adding Multi-Unit Freehold Blocks into their portfolios, internal data from Shawbrook has revealed.
The data showed there was a 14 per cent increase in landlords looking to invest in this property type in 2024 when compared with 2023.
Shawbrook director of real estate proposition, Daryl Norkett, said: “Multi-Unit Freehold blocks 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 makes them a popular choice for landlords."
He added there is a general trend towards landlords looking at higher yielding properties properties including houses of multiple occupation and semi-commercial properties.
"These property types are similarly seeing a rise in activity due to their ability to provide a higher rental yield and shield against economic challenges.”
Shawbrook’s data also showed a 37 per cent increase in the value of the mortgages that landlords are applying for such purchases.
It said this showst landlords are “targeting higher-value blocks while still maintaining good leverage ratios”.
Scotland has been a particularly popular location for landlords seeking to invest in MUFBs, with mortgages agreed in principal doubling from 3.1 per cent to 7.4 per cent.
Similarly, the Northwest has seen a 43 per cent increase in the number of mortgages agreed in principle.
This is reflective of landlords looking to grow their portfolios, as MUFBs generate both diversified income streams and higher yields than a single unit can provide.
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
