Studio flat rental market downsizing

Property Q&A #6: Are studio apartments a good buy-to-let investment?

Studio Apartments can split a crowd of property experts; while all acknowledge they can be a good investment, some would say a one or two bed would be favourable.

I firmly believe that a cleverly designed, well located studio apartment in the can punch above its weight as a buy-to-let opportunity, as long as it ticks the right boxes.

Property Investment Q&A #4: Should I invest in an area I don’t know?

Here’s what to look out for when choosing a studio apartment as your investment property.

Good Design

Built in Storage: Floor space is a luxury in a studio and it may be difficult for a tenant to fit in a wardrobe etc. Look out for built in storage that provides a solution to this problem.

Light: Ensure that the living space is light and airy, making the studio feel larger and liveable.

Separated Bedroom: Studios with a divide between living and sleeping areas will be more appealing to tenants; after all, who wants to sleep in the kitchen?

Affordability & Demand for Tenants

Affordability: Overall, studios are aimed at tenants with budget in mind – ensure that the proposed rent per calendar month is affordable for the location.

Demand: How many other studios are there for sale in the area? Will your property be filling a gap in the market or is the market flooded with similar studios?

Good, Long Term Investment Opportunity

Yield: Studios should earn a higher yield than their one and two bed counterparts.

Capital Growth: Capital growth is usually a little slower with a studio apartment, so bear in mind that a studio should be considered as a longer-term investment.

February House Price Index: Supply remains close to record lows

Maintenance costs: Studio apartments tend to attract a more transient tenant, who tend to rent for around 12 months. This can lead to more wear and tear, and higher maintenance costs – however this is balanced by the space being smaller and cheaper to maintain.

Every investment decision must start with your goals and financial situation. Determine what you can afford to buy and then from there, develop a property strategy – remember to include studio apartments in your plan!

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT