Professional landlords are increasingly adding Multi-Unit Freehold Blocks (MUFBs) into their portfolios, according to Shawbrook Bank.
Based on internal data the lender said there’s been a 14% increase in landlords looking to invest in this property type in 2024 compared to 2023.
There’s also been a 37% increase in the value of the mortgages that landlords are applying for.
Daryl Norkett, director of real estate proposition at Shawbrook, said: “Multi-Unit Freehold blocks 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.”
Scotland has been a particularly popular location for landlords seeking to invest in MUFBs, while in the England the North West is becoming a spot where MUFBs are popular.
