In a recent market analysis by Inventory Base, the UK’s premier property inventory specialists, flats have been identified as the top buy-to-let investment option for landlords. This comes as property values cool and rental growth surges.

The report highlights that flats have recorded the highest annual increase in average yield among all property types. Detailed examination of rental values and house prices reveals that flats boast the highest average yield at 6.4% across Britain. Terraced homes are a close second at 6.3%, followed by semi-detached homes at 5.3%. Detached properties lag behind with a yield of 3.9%.

Flats have not only delivered the best returns in the current market but have also experienced a slight decrease in average property values by -0.9% over the past year. Concurrently, the average monthly rental value for flats has surged by 9.3%, the highest growth rate among all property types.

This combination of declining property values and rising rental income has propelled the average yield for flats up by 0.6% in the past year, surpassing the yield growth of terraced homes (0.4%), semi-detached homes (0.2%), and detached homes (0.2%).

Sián Hemming-Metcalfe of Inventory Base commented, “Flats not only offer buy-to-let investors a generally more affordable entry point for their initial investment, but they also benefit from a rental market that sees higher tenant demand and, consequently, stronger rental price growth. While the capital appreciation may not match that of other property types, flats come with a host of advantages for investors, including lower running costs and a smoother process when it comes to renting and managing the property.”

Hemming-Metcalfe further emphasized the importance of efficiency in property management: “Detailed and accurate property reports are indispensable. These reports document and maintain all aspects of the property, significantly reducing the risk of disputes and costly repairs. In the end, it’s the combination of strong returns, convenience, and time saved—underpinned by the precision of thorough property reports—that makes flats such an appealing investment.”