Landlords 'love flats and terraced properties'

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Flats and terraced houses are the types of property most favoured by landlords and tenants, a new study has indicated.

The latest figures from Paragon Mortgages indicated that flats make up 46 per cent of the typical landlord's portfolio.

Terraced houses account for a third (34 per cent) of the average portfolio. However, detached properties remained unpopular with landlords - they account for just six per cent of all buy-to-let properties.

Paragon's data also showed that terraced houses generate the highest yield for landlords - with a rate of 6.4 per cent. It also found that these types of properties can often be cheaper than flats and maisonettes.

"Small terraced houses, flats and maisonettes are popular rental property types amongst certain tenant groups - such as young professionals and students - particularly in busy cosmopolitan areas," explained John Heron, managingdirector of Paragon Mortgages.

"In places where there is proven demand for this type of property, landlords can command high rents and attractive yields."

Mr Heron added that landlords always needed to research the demand before buying any property.

A recent report from Arla showed that over 90 per cent of landlords would not look to sell their properties if house prices started to decline.

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