Investors purchasing property in the UK are most keen on flats and terraced houses, according to new research from Paragon.

The specialist buy-to-let mortgage broker's survey of landlords revealed that 16 per cent intend to invest in more properties this year, with flats and semi-detached houses for rent among the most popular portfolio additions.

As investors increase the size of their real estate holdings, it is important that they make sure their landlord insurance provides adequate cover for all properties.

Particularly if they are to be rented out to tenants, it is crucial to have a policy in place, with the financial consequences of liability likely to be significant in the event of personal injury to a tenant.

According to Paragon's quarterly PRS Trends Survey, 20 per cent of professional landlords are considering further property investments, compared to six per cent of those operating as landlords on the side.

Altogether, some 58 per cent of respondents are considering investing in flats and maisonettes, with the same percentage interested in terraced houses. Some 30 per cent intend to invest in semi-detached houses, while 21 per cent will purchase detached houses and nine per cent bungalows.

John Heron, managing director of Paragon Mortgages, said:  "It is very encouraging to see private landlords looking to invest in a wider variety of property types.

"This may well be in response to the fact that we are starting to see higher demand for larger rented properties from families who are choosing the private rented sector because they do not want to, or cannot buy in today's difficult economic environment."

To some extent, the choice of property type will depend on the kinds of tenant that landlords wish to target, with flats and houses boasting a large number of bedrooms making for ideal student accommodation, for example.

Similarly, for families choosing to rent rather than buy, location and gardens are likely to be more pressing concerns.