Landlords capitalise on commercial property market recovery – Shawbrook

Landlords are seizing the opportunity to invest in commercial property as the market rebounds as lending for property purchases has surged by 102% year-on-year, Shawbrook reveals.

The South East region has emerged as a hotspot for commercial property investment, accounting for 30% of the total commercial purchase lending.

Its strong transport links, robust economy and high demand make it an attractive destination for investors, the bank says.

Commercial property market is recovering

Daryl Norkett, the bank’s director of real estate proposition, said: “The commercial property market is recovering after a turbulent period, with several sectors showing renewed signs of growth.

“Investors are keen to expand and diversify their portfolios with high-yield, high-income properties like commercial, semi-commercial and HMOs.

“These assets not only offer potentially higher returns, but diversification can also help to build resilient portfolios even in uncertain markets.”

He adds: “However, investors should conduct thorough research, as risk profiles can vary significantly across regions and asset types.”

Interest in semi-commercial properties

As landlords diversify their portfolios, interest in semi-commercial properties has also grown significantly, increasing from 13% to 24% of applications.

To cater to this demand, Shawbrook has enhanced its commercial investment product offering and raised the maximum LTV for various asset classes.

Those classes include retail, healthcare, education and industrial assets.

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