UK landlords expect one bedroom flats to produce the biggest capital gains this year, with two bedroom flats set to provide the biggest rental yields, a study has revealed today.
Research showed that 25 per cent of UK landlords said one bedroom flats would offer the highest capital gains over the next year, followed by student accommodation in university towns and cities.
Of the landlords surveyed by Amicus Property Finance, 22 per cent said they thought two bedroom flats will offer the most attractive capital gains, and 28 per cent of landlords bet two-bed properties would offer the best rental yields.
Only three per cent of landlords predicted that maisonettes would offer the best capital gains, showing that flats have become a more attractive option than houses with investors.
Student accommodation was also a popular bet for rents, with 25 per cent of landlords saying they thought these would provide the best rental yields.
John Jenkins, chief executive of Amicus, said: "The findings show flats are the clear winners over houses and maisonettes for both capital growth and rental yields.
"Despite some uncertainty in the consumer buy-to-let sector as a result of changes to stamp duty charges, we're seeing a sustained and growing appetite for short-term property finance driven by the tightening of mainstream bank underwriting requirements and the inability of some lenders to act sufficiently quickly to respond to demand."