Landlords frustrated by poor returns and high taxes in the buy to let arena are looking for ways to diversify investment with commercial property, says specialist lender Shawbrook.
Its recent research revealed that around 19 per cent of landlords are considering commercial property, with more than a third of citing the need to diversify away from residential investment as the key reason for doing so.
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.
Shawbrook - which has recently beefed up its commercial property lending facilities - says high streets are now seeing more emphasis on local independent stores, emphasising the importance of good commercial properties in towns and cities.
“Fluctuating prices and high borrowing costs are hampering confidence in the residential property sector” says Emma Cox, managing director of real estate at Shawbrook.
“As a result, landlords are looking for other ways to diversify their portfolios and cater for current demand.
“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.
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Business rates
George I concur. BUT I just hope that it’s true! With L Lords wanting, do and help the high streets.
That’s never going to help the empty shop units. They’re prob referring to small commercial industrial units.
Wishful thinking. Take a walk down any high street, the number of empty shops is still rising, additionally places like Oxford Street in London are plagued with traders who simply disappear having never paid the rent, whilst using the premises as a front for criminal activity. Even in small regional towns the numbers of retail shops being raided by the authorities for Customs fraud remains a major problem, and then you are stuck with having to deal with getting your premises back and trying to deal with the stigma it's brought with it in the eyes of the local community. I think in terms of Commercial property some kind of Small Office premises would be better assuming we don't go through the whole lock down saga again.
I can but hope pray AND wish. John.🤞🙏. 😊
There’ll be another lockdown, even though they openly admitted the last one achieved nothing apart from destroying small businesses
Which is its main aim
I don't think there'll be another lock down. the public simply will not do so certainly I would not
I would doubt it George, the public won’t accept that again.
Not for me but I would think there is plenty of scope for converting commercial premises into residential. Given the massive shortage of homes and the oversupply of empty commercial premises. Someone just needs to make it easy to do it.
Government has already made it easy to convert commercial to residential, and have been consulting on making it even easier.
But its via Permitted Development (planning application not needed). So a blanket approach that is harming town centres more than already, due to allowing out of town developments (even though two faced National Planning Policy is meant to support town centres).
No, like Worried Landlord, I'm not going to convert commercial, nor even go into commercial.
Thanks to Gove and the supposedly tenant supporting groups, I'm likely to reduce, not increase, my number of rentals: don't need the hassle.
BTW, I was a tenant myself for several years, many years ago: so know it from both sides.
You might change ur mind when Labour get in next year.😁 Henry.
In what way?
Just a reminder that landlords get no business rates reduction but tenant gets 75%
Just a thought for anyone crazy enough to invest in a shop
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