Mortgage broker Landlord Mortgages say that they have seen an annual increase of 126% in the number of investment properties under 25 square metres in size.

"The UK is facing a housing crisis as there is a chronic lack of desirable residential property which is leading to significant price hikes and many consumers being priced out of the market. One of the ways that the housing industry is working to try and combat this problem is by building smaller units - thus the rise of the studio flat." says M.D. Lee Grandin

"This rise of the mini-mansion has trickled down to the buy-to-let market and we believe that this trend is set to grow and will continue, as builders realise the advantages of building smaller and more cost effective properties.

"Despite the move towards smaller homes, landlords who attempt to purchase a petite property often have difficulty finding a lender, as many companies will not lend on flats under 25 square metres in base size. We urge lenders to react to the need in this market and enhance their lending criteria to take into account the re-saleability of the property rather than just the size. When it comes to buy-to-let property, size shouldnt always matter."