The research shows that flats currently provide the highest returns for buy-to-let investors, with an average yield of 6.4% across Britain. Terraced homes come in a close second at 6.3%, while semi-detached homes offer a yield of 5.3%. In contrast, the average yield for detached property investments stands at just 3.9%.

Flats not only lead in current yields but also show the strongest performance in other metrics. Over the last year, flats are the only property type to experience a decline in average property value, falling by 0.9%. Simultaneously, flats have seen the highest growth in average monthly rental value, up by 9.3% compared to last year.

As a result, the average yield for flat buy-to-let investments has increased by 0.6% in the past year, outpacing the growth seen in terraced homes (0.4%), semi-detached homes (0.2%), and detached homes (0.2%).

“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,” said Sián Hemming-Metcalfe, operations director at Inventory Base.

“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.