Forget traditional buy-to-let, savvy investors are now turning their attention to semi-commercial properties! Landlords are seeking out properties that offer a mix of commercial and residential space, aiming for higher yields and more diverse income streams.
The rise of semi-commercial
Mortgage lender Shawbrook has seen a dramatic increase in applications for semi-commercial properties this year, with a whopping 24% of applications in 2024 focused on this type of investment, compared to just 13% last year.
Why are landlords going semi-commercial?
- Higher yields: These properties often offer higher rental yields than traditional single lets, attracting investors looking for bigger returns.
- Diverse income streams: Landlords can benefit from both commercial and residential tenants, creating a more stable income flow.
- Future potential: Many semi-commercial properties have the potential for future value generation through permitted development rights, allowing for the addition of more residential units.
The South East – A hotspot for semi-commercial
The South East is proving to be a particularly attractive region for these investments, with almost 40% of Shawbrook’s semi-commercial applications coming from this area in 2024. This suggests a growing demand for these properties in regions with strong economies and growing populations.
What does this mean for you?
If you’re considering investing in property, it’s worth exploring the semi-commercial market. These properties could offer attractive returns and diversification opportunities.
Key takeaways:
- Landlords are increasingly investing in semi-commercial properties.
- These properties offer higher yields and diverse income streams.
- The South East is a hotspot for semi-commercial investment.
This trend suggests that landlords are adapting to a changing market, seeking out new investment opportunities to maximise their returns. It’s a sign that the buy-to-let sector is evolving, with savvy investors finding creative ways to thrive in a competitive landscape.