Increase in commercial property sales from buy-to-let investors

Increase in commercial property sales from buy-to-let investors

The residential buy-to-let sector saw a raft of changes last year and we’re probably all well aware by now that there are more to come this spring.

Despite the changes, the sector has proved to be resilient, with the demand for buy-to-let mortgages still very apparent. At Together, we saw strong performance in buy-let-lending in 2016, and June was a record month for us in this sector, despite it being in the immediate aftermath of the increased stamp duty.

As further tax changes loom, there are various ways that investors are choosing to navigate the changes, including buying through limited companies and restructuring property portfolios.

According to data from auction house Allsop, many investors are now turning to commercial property, instead of residential. The property firm has found that there has been a threefold increase in the number of investors purchasing commercial spaces such as shops, restaurants and offices.

Historically, investors chose to buy-to-let residential properties, since house prices traditionally rose year-on-year. The value of commercial properties hasn’t seen the same consistent growth, although rental yields are higher on average, which is why some investors are looking to commercial property to retain their profits and avoid what many regard as punitive tax changes.


Ultimately, there are still plenty of options for investors, which is why we aren’t seeing landlords rapidly exit the market. Low interest rates and a shortage of housing supply is currently counterbalancing the tax changes, and neither of these factors are likely to change in the coming year.  

It will certainly remain a talking point in the year ahead, and we’ll be interested to see how things evolve.

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Latest Comments

Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

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Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

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paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

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CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

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warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

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MH
MH 13 Apr 2017

You are right that the bank holidays are going to be spoiled in looking for the properties. But people who want to sell their property and looking for the better relocation, they can get benefits of this...

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bnellyb
bnellyb 08 Apr 2017

There will be an exodus of private landlords over the next 5 years as tax changes take effect, private landlords provide an important service to the rental market, why do housing associations and councils...

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Fred Cassman
Fred Cassman 07 Apr 2017

"Make it look like you are at home": often people forget this and share on facebook their location!

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jared townsend
jared townsend 05 Apr 2017

It'll be interesting to see how & if the Government's asset sale regarding mortgages helps

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