Is Investing in Studio Apartments in the UK Worth It in 2025?
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Studio apartments are becoming increasingly popular among renters who value affordable, modern living spaces in vibrant city centres.
For investors, this trend opens up a fantastic opportunity to earn a steady rental income and see great returns over time.
In this guide, I’ll show you exactly why studio flats are worth your attention and how you can make them work for your property portfolio.


Here’s what we’ll cover:
- Clear answers to common questions, like ‘How big are studio apartments?’ and ‘How much rental income can a Studio Apartment generate?
- Top Reasons why studio apartments are a smart investment choice.
- Practical tips to maximise your returns.
- An overview of the best UK cities to invest in studio apartments, including hotspots like Manchester, Liverpool, and Nottingham.
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What is a Studio Apartment?
A studio apartment is a self-contained living space where the bedroom, living area, and kitchen are combined into one open-plan room, with a separate bathroom.
These apartments are designed to maximise efficiency in a compact layout.
Typically, studio apartments range from 300 to 1,000 sq ft, but the most common sizes are between 400 and 600 sq ft, ideal for singles or couples who don’t need much space.
For example, a 450 sq ft studio flat may feature a kitchenette, a living/sleeping area, and a small bathroom, all within one open space.
The simplicity of a studio apartment is one of its key attractions. With fewer rooms, they are easier to clean, cost less to heat, and require minimal furnishing.
For renters, especially young professionals and students, these features—combined with affordable rent and central locations—make studios an attractive housing option.
This consistent demand ensures that studio apartments remain a reliable choice for property investors.


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How Does a Studio Apartment Differ from a 1-bedroom Apartment?
The key difference between a studio apartment and a 1-bedroom apartment is the layout.
- Studio Apartment: An open-plan design where the bedroom, kitchen, and living area share the same space, with only the bathroom being separate. These spaces are typically 300–600 sq ft and are perfect for renters who prioritise affordability and simplicity. For example, a studio flat would combine everything into one room, offering modern and efficient living.
- 1-Bedroom Apartment: A separate bedroom and more defined spaces for living and dining. These flats usually have more storage and range from 500–800 sq ft. While they provide more privacy, they often come with higher purchase or rental costs compared to studios.

Here’s a quick comparison table between a studio apartment and a 1-bedroom apartment:
Feature | Studio Apartment | 1-Bedroom Apartment |
---|---|---|
Layout | Open-plan; bedroom, kitchen, and living area combined | Separate bedroom, defined living and dining areas |
Size | 300–600 sq ft | 500–800 sq ft |
Privacy | Less privacy due to open layout | More privacy with separate rooms |
Storage Space | Limited storage | More storage options |
Cost | Generally lower rent or purchase price | Higher rent or purchase price |
Maintenance | Easier and cheaper to maintain | Requires more upkeep |
Tenant Appeal | Ideal for singles, minimalists, and budget-conscious renters | Suitable for couples, professionals, and those needing more space |
Investment Perspective | Lower maintenance, high demand in urban areas | Higher rental yield potential attracts long-term tenants |
For property investors, the compact size of studios means lower maintenance, while their open layout appeals to tenants looking for practical and stylish living spaces.
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Why Are Studio Apartments Popular in the UK?
Studio apartments have become a top choice for renters across the UK, especially in cities like Manchester, Liverpool, and Nottingham. Here’s why:
Affordability
Studio flats are cheaper to buy and rent, offering an affordable entry for investors and tenants. In 2022, the UK average price was £175,000, making them a high-demand buy-to-let option.
Flexibility
With compact, open-plan designs, studio apartments are easier to furnish and customise. Their smaller size also makes them energy-efficient, saving on heating and electricity costs—a major draw for eco-conscious renters.
Location Benefits
Studio apartments offer affordable living in prime locations, attracting tenants seeking convenience. In Liverpool’s L1 and Nottingham city centre, demand is high among students and professionals. For investors, strong demand ensures low vacancies and steady rental income.
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Angel Gardens is located in an up-and-coming district of Liverpool. It is in close proximity to two major regeneration projects: the £150 million Project Jennifer and the £5.1 billion Liverpool Waters scheme.
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