Professional landlords are increasingly adding MUFBs into their portfolios, according to the latest internal data from Shawbrook.
The specialist lender confirmed it has seen a 14% increase in landlords looking to invest in this property type in 2024 compared to 2023.
Shawbrook’s internal data also showed a 37% increase in the value of the mortgages that landlords are applying for to support such purchases, indicating that landlords are targeting higher-value blocks while still maintaining good leverage ratios.
Scotland has been a particularly popular location for landlords seeking to invest in MUFBs, with mortgages agreed in principal doubling from 3.1% to 7.4%.
Similarly, the North West has seen a 43% increase in the number of mortgages agreed in principal (5.3% to 7.5%).
Daryl Norkett, director of real estate proposition at Shawbrook (pictured above), commented: “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 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.”
