City flats attract landlords as office workers return to urban areas

City flats are the top investment choice for UK landlords as office workers resume their urban lifestyles, a new study by Shawbrook Bank reveals.

The research found that 28% of UK landlords agreed that city flats were the best investment in the past year, and 26% expected them to remain so in the next year.

This comes as 43% of workers have returned to the office, according to recent data.

‘City living post-pandemic has not gone over landlords’ heads’

Shawbrook’s managing director of real estate, Emma Cox, 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.”

She added: “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.”

Flats are not the only urban properties that appeal to landlords

City flats are not the only urban properties that appeal to landlords with semi-detached houses in cities (21%) and student accommodation (18%) also among the preferred investment options.

The study also showed regional variations in the demand for city flats.

London (30%), Scotland (39%), and Wales (28%) had the highest proportion of landlords who favoured city flats, while Northern Ireland (17%), the North East (18%), and the South West (19%) had the lowest.