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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brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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