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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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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