Professional landlords are increasingly adding multi-unit freehold blocks (MUFB) to their portfolios, research shows.
According to Shawbrook’s internal data, there has been a 14% rise in professional landlords looking to buy MUFBs in 2024 compared to 2023.
The internal data also showed a 37% growth in the value of mortgages that landlords are securing to support MUFB purchases.
The firm said this showed that landlords were increasingly “targeting higher-value blocks while still maintaining good leverage ratios”.
Shawbrook said that Scotland was a popular location for landlords looking to invest in MUFBs, with mortgages agreed in principle doubling 3.1% to 7.4%.
The North West was also a popular region, with mortgages agreed in principle rising from 5.3% to 7.5% year-on-year.
The lender said that this was “reflective of landlords looking to grow their portfolios, as MUFBs generate both diversified income streams and higher yields than a single unit can provide”.
Daryl Norkett, director of real estate proposition at Shawbrook, said: “MUFBs 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 make them a popular choice for landlords.
“In fact, we’re seeing this trend towards higher-yielding property types across the board with landlords increasingly considering property types like houses in multiple occupation (HMOs) and semi commercial properties, which are similarly seeing a rise in activity due to their ability to provide a higher rental yield and shield against any economic challenges.
“Those interested in finding out more about MUFBs or how they can further diversify their portfolio should get in touch with a broker to better understand their options.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
