LANDLORDS TIP ONE BED FLATS FOR BIGGEST CAPITAL GAINS OVER NEXT 12 MONTHS

• Two bed flats and student accommodation predicted to produce best rental yield

Professional landlords are tipping one bedroom flats to produce the most attractive capital returns and two bedroom flats to generate the biggest yield, according to a new survey¹ by Amicus Property Finance, the leading specialist short term property lender.

A quarter (25%) of UK landlords said that one bedroom flats will offer the most attractive capital gains over the next year, closely followed by student accommodation in university towns and cities (24%).  One in five (22%) landlords believe two bedroom flats will offer the best opportunities for capital gains while 21% suggested it would be three bedroom flats. Terraced houses were the fifth most popular option with 19%.  Maisonettes were the least popular choice with only 3% landlords predicting capital gains.

For the best rental yields, 28% of landlords backed two bedroom flats while 25% predicted student accommodation in university towns and cities.  A fifth (21%) selected three bedroom flats while one bedroom flats (20%) and new build properties (14%) were the fourth and fifth most popular options. In last place are houses on established estates with just 5%.

John Jenkins, CEO of Amicus commented: “The findings show flats are the clear winners over houses and maisonettes for both capital growth and rental yields and this is reflected in our own experience in servicing professional landlords’ short term borrowing requirements.

“Despite some uncertainty in the consumer buy to let sector as a result of changes to stamp duty charges, we’re seeing a sustained and growing appetite for short-term property finance driven by the tightening of mainstream bank underwriting requirements and the inability of some lenders to act sufficiently quickly to respond to demand.

Amicus Property Finance, part of Amicus is a specialist in the provision of short term property loans. The firm‘s property loan portfolio is currently made up of 85% residential properties and 15% commercial properties, with 70% located in London or the South East. Its loans are repaid, on average, in 8 months and it typically lends between £50,000 and £7 million.

The property types that are set to offer the most attractive capital gains over the next 12 months
One bedroom flats	25%
Student accommodation in university towns/cities	24%
Two bedroom flats	22%
Three bedroom flats	21%
Terraced House	19%
Larger houses with flexibility to convert to multiple occupation	11%
New build properties	10%
Bungalows and homes suitable for elderly tenants	10%
Houses on established housing estates	5%
Maisonettes	3%

Source: Amicus Property Finance (May 2016)

The property types that are set to offer the most attractive rental yields over the next 12 months
Two bedroom flats	28%
Student accommodation in university towns/cities	25%
Three bedroom flats	21%
One bedroom flats	20%
New build properties	14%
Terraced House	13%
Bungalows and homes suitable for elderly tenants	9%
Larger houses with flexibility to convert to multiple occupation	8%
Maisonettes	8%
Houses on established housing estates	5%

Source: Amicus Property Finance (May 2016)