Specialist lender Shawbrook are reporting that landlords frustrated by poor returns and high taxes in the buy to let arena are looking for ways to diversify investment with commercial property.
The study also showed that those who already own commercial properties are also planning to expand further, with 35 per cent of landlords with commercial assets stating that they are looking to invest in more.
“Fluctuating prices and high borrowing costs are hampering confidence in the residential property sector” says Emma Cox, managing director of real estate at Shawbrook.
“The increase in workers returning to offices and the evolution of local high streets are two examples of areas where landlords will be seeking opportunities to invest, and those who already own commercial properties will be looking to add more.
“Landlords could become the unsung heroes of the high street, with many planning to support their local communities by injecting new life into commercial properties and retail units.”
Shawbrook says investors with larger portfolios are more likely to have already entered the commercial sector, with many landlords seeing the opportunity to branch into commercial property as a chance to support their local community.
“Commercial property is certainly a good prospect for those who have typically specialised in the residential market and are looking to adapt their strategies now or in the near future” explains Cox.