The number of professional landlords considering adding multi-unit freehold blocks into their portfolios had increased by 14% this year, according to Shawbrook.

The lender’s internal data also shows a 37% increase in the value of the mortgages that landlords are seeking to support such purchases.

This suggests that landlords are targeting higher-value blocks while still maintaining good leverage ratios.

In Scotland, there has been a doubling in mortgages in principle agreed on MUFBs and in the North West there has been a 43% rise.

Shawbrook director of real estate proposition Daryl Norkett says: “MUFBs are another attractive option for professional landlords looking to diversify their portfolios. 

“They 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.”