As workers return to the office, demand for urban apartments to rent has increased.
According to Shawbrook Bank, landlords have capitalised on workers returning to the office by investing in flats in cities.
Research from the lender has revealed that over a quarter of UK landlords believe that flats in cities were the best investment over the last 12 months.
And more than a quarter think the trend will continue over the next year.
Opportunity knocks
Shawbrook found that nearly half of workers (43 per cent) are now returning to the office, leading landlords to identify the investment opportunity in city centres.
The bank also noted that other investment opportunities included semi-detached properties in cities (21 per cent) and student accommodation (18 per cent).
The number of landlords that agreed that flats in cities were the best investment is highest in London (30 per cent), Scotland (39 per cent), and Wales (28 per cent).
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.”
