The Best Type of Property Investment UK

1. Single Lets

HMO properties (Homes of Multiple Occupants) once saw high demand for student accommodation. Now, traditional buy-to-lets – single 1-bedroom properties in particular – see higher demand from tenants and investors. This is due to students choosing purpose-built student accommodation, looking for higher-quality, modern designs.

Many young professionals and recent graduates search for 1-bed rentals. Because cities North of London are improving and growing their business sectors and transport connections, such people relocate to these places for work or for a more affordable and commutable location to London.

2. Furnished Holiday Lets

Short-term rentals, seen in the likes of Airbnb, are growing in popularity and demand from both buyers and holiday-goers. The preference for short-term lets over hotels surged with ‘staycations’ following the pandemic, with people wanting the flexibility of a home away from home. Even with more upkeep and management costs, short-term lets have recently outperformed the typical long-term buy-to-let income.

While the holiday let industry is increasing in demand, only 1.5% of landlords are holiday let owners, so competition is extremely low. Short-term rentals allow a more flexible and straightforward investment for landlords. 512 million nights were registered in 2022, which is a massive 7% increase from 2019’s figures and reflects the short-let resurgence from the ‘staycation’ trend. Having more attractive rental prices than hotels, short-term lets prove to be one of the best property investments currently in the UK.