Professional landlords moved their focus towards higher-yielding property types in 2024, with applications for semi-commercial and commercial property purchases making up a greater share of activity, according to new data from Shawbrook.
While overall application volumes remained steady, professional landlords displayed a clear appetite for diversification. As a proportion of all applications submitted, semi-commercial purchase applications rose by 31% year-on-year, while commercial property purchases increased by 28%.
These numbers indicate an increasing trend towards higher-yielding property investments within the professional landlord space.
At the same time, refinancing trends revealed a cautious approach to managing existing portfolios. Applications for refinancing without additional capital raising increased across all property types, while refinancing with capital raise applications declined.
This suggests landlords are prioritising debt management in the current high-interest-rate environment, opting to secure fixed rates through product transfers, in order to optimise existing portfolios rather than sell.’
Commenting on the latest research Shawbrook 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.”
