0:05 AM, 9th January 2025, About A year ago
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Professional landlords shifted focus last year to higher-yielding property types, including semi-commercial and commercial, while refinancing activity reflects a cautious approach to debt management, an analysis by Shawbrook reveals.
It found that while overall application volumes remained consistent, there was a big rise in mortgage applications for semi-commercial and commercial property purchases.
Shawbrook says that trend indicates a growing appetite for higher-yielding investments.
The lender’s director of real estate proposition, Daryl Norkett, said: “2024 was the year of diversification for professional landlords.
“We saw them shifting their focus towards higher-yielding opportunities like semi-commercial and commercial properties, demonstrating their resilience and adaptability in a challenging market.
“Clearly many professional landlords are adapting to market conditions with a clear strategy.”
He added: “At the same time, the more cautious landlords are focusing on managing existing debt carefully, securing stability through fixed-rate product transfers to continue to manage and grow their property businesses.”
The lender’s internal data shows that applications for semi-commercial property purchases rose by 31% year-on-year.
Applications for commercial property purchases increased by 28%.
This diversification trend highlights the resilience and adaptability of professional landlords navigating a challenging market, Shawbrook says.
Also, refinancing trends reveal a cautious approach to managing existing portfolios.
Applications for refinancing without additional capital raising increased across all property types, while applications for refinancing with capital raises declined.
This suggests, the lender says, that landlords are prioritising debt management in the current high-interest-rate environment.
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