Property investors are increasingly looking to expand their property portfolios with Houses of Multiple Occupation (HMO).
Recently 28% of landlords have been considering the purchase of a HMO which is an increase of 18% from 10% half a year ago.
Landlords are also increasingly looking at commercial and semi-commercial property as an option to expand their portfolios.
On the other hand, traditional buy to let properties such as flats and houses have fallen slightly from 83% in November to 79%.
More complex properties such as HMOs are able to offer higher yields which can explain why more landlords are beginning to consider these.
The research by Mortgages for Business has also revealed that changes to stamp duty and mortgage tax relief could be factors as to why the number of investors looking to expand their portfolio has dipped.
The figure has fallen marginally to 41% from 46% in November 2015.
Only a small proportion of landlords are looking to shrink their portfolios, which is down from 18% in November 2015, the research also revealed.
“With higher yields it is no surprise that there has been a sizeable shift towards the more complex property types. The interest in commercial and semi-commercial property may have also grown as these asset classes do not incur the Stamp Duty Surcharge imposed on residential property,” said David Whittaker, managing director at Mortgages for Business.