Would You like a feature Interview?
All Interviews are 100% FREE of Charge
Applications to a single lender are up two-fold in 2024 compared to 2023, and investors are increasingly purchasing semi-commercial properties.
So far this year, 24% of applications to mortgage lender Shawbrook have been for the purchase of semi-commercial properties, up from 13% in 2023.
The bank suggested that investors have been turning to higher-yielding assets as market volatility has decreased in recent months.
Darryl Norckett, director of real estate propositions at Shawbrook, said: “Property investors are adapting to a high interest rate environment, giving portfolio landlords the opportunity to expand across a wider range of assets.”
“We are already seeing this trend in recent applications received, with investors turning to property types such as HMOs, social housing and semi-commercial properties, which tend to offer higher rental yields than traditional standalone rentals.”
“These opportunities vary by property but are highly attractive to investors. Semi-commercial properties in particular have the advantage of having both commercial and residential space, allowing landlords to combine multiple income streams and enjoy higher yields.”
“Anyone interested in exploring the semi-commercial market or diversifying their portfolio should speak to a broker to better understand their options.”
When we looked at the types of properties landlords invested in, 60% were looking for retail space with apartments on the upper floors. For small investors, many of these assets also have the potential to create value in the future by taking advantage of permitted development rights to add residential units.
The Southeast in particular has become an attractive destination for investors, with two-fifths (39%) looking at the region in 2024, compared to just one-quarter (27%) in 2023.