Over a quarter (28%) of UK landlords believe that flats in cities were the best investments over the last 12 months, Shawbrook Bank has found.

Research by the lender revealed that 26% of landlords believed these investments would also continue to be the most popular in the next 12 months.

The results come as nearly half (43%) of workers are returning to the office, giving landlords the opportunity to invest in city properties.

Other notable investment opportunities listed by landlords included semi-detached properties in cities (21%) and student accommodation (18%).

Shawbrook Bank also found that more widely, the number of landlords who agreed that flats in cities were the best investment is even higher in areas such as London (30%), Scotland (39%) and Wales (28%).

Managing director of real estate at Shawbrook Bank, 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. 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.”

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