Multi-Unit Properties (Flats)Multi-Unit Properties (also known as a multi-duelling unit or MDU) are a characterisation of a type of residence. This accommodation is where different flats/units are generally for private occupants within a single building. Units can be beside one another or on top of one another.

Some examples include buildings with space for both commercial business and an area for residential or buildings that contain multiple flats with shared amenities such as parking, gardens, and walkways – typically the building is on a single title, and additionally each unit has its own AST agreement in place.

Multi-unit properties are not to be confused with HMOs (Houses of Multiple Occupations) which are generally room lets with shared bathrooms and kitchens.

Multi-Unit Properties started to show a remarkable interest in 2018. Even a year later, this pattern doesn’t appear to be slowing any time soon.

Throughout the years, investors have found that these properties provide an ideal choice for extra revenue although this type of property is not for everyone, however, the reality still remains that putting resources into Multi-Unit Properties has its advantages.

So why should you invest in a Multi-Unit Property?

The best investment properties for your portfolio are ones that produce higher returns. Multi-Unit Properties can provide good yields, so for example, putting your resources into a house that has been split into 3 flats may provide a better return than going with a single-family rental for a whole house.


Investing in multi-units needs a more significant deposit due to the nature of the property. Not all lenders will provide a mortgage for this property type, however, there are specialist lenders in the market who can provide the finance required. Mortgage rates for this type of dwelling are generally higher when compared to traditional Buy To Let Mortgages. For advice in this area, you really do need to speak to brokers who are specialists in this field.

Increasing rental demand

Multi-Unit Properties (High Rise)The largest generation in our history, millennials, are now reaching their late 20s and 30s. But, how does this fact affect investing in multi-unit properties? Well, this age group is the same one filling up the rental market. With rental demand rising, millennials are the key demographic for multi-units in bigger cities.

Buying a home is still out of the question for most people in a lot of cities across the country and so renting is their only option.


  • Increased rental yield
  • Higher demand from tenants as rent is cheaper due to the overall smaller unit size


  • Not all lenders will finance the property type – only specialist providers
  • Must be an experienced landlord to qualify for funding in most cases
  • Higher maintenance of the property

The consensus for 2019 is that multi-unit properties are going to continue to be a good investment although experience is key in this area.

For mortgage advice in this area please give The Money Hub a call to discuss your options or visit and make an enquiry.

DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.