More than a third of BTL landlords (34%) are gearing up for further expansion in the next 12 months, despite the recent inflationary and mortgage volatility, revealed new data from Together.
According to Together’s latest ‘Opportunities and Outlook: the future of commercial property’ report — carried out by Censuswide on behalf of the lender — 68% of respondents feel optimistic about the outlook of their business, with a quarter planning to refinance their properties to support business objectives over the next year.
Regionally, those surveyed in London, west Midlands and in the north-west of England are expected to buy more properties over the next 12 months.
In addition, 58% of all respondents would recommend others invest in the UK commercial property market — this comes as 42% have seen an increase in revenue in the part 12 months.
Despite the market optimism, 16% of commercial landlords surveyed said they would be exiting the market.
The survey also revealed 42% of investors surveyed would prioritise using a specialist lender rather than a mainstream finance provider for additional funding, as 39% of these respondents claimed specialist lenders are better prepared to take greater risk, grant larger loans, and support entrepreneurial plans.
Other reasons for preferring specialist lenders for commercial finance include the speed of lending and a higher level of service, both cited by 29% of investors.
Chris Baguley, group channel development director at Together, said: “The short, sharp shock in interest rates since the Covid years triggered some cautiousness in the commercial market while investors were trying to predict where the peak would be.
“With rates settling, while there is still an overall flattening, activity is returning as the sector reacclimatises to the new environment.
“What continues to be apparent is the clear optimism and enduring health of the commercial sector — the winners of 2024 and beyond will be those who are able to seek out new opportunities, spot where best to create value and use the right financing to capitalise on emerging growth sectors.”
Rob Thomas, economist and principal researcher at the Intermediary Mortgage Lenders Association (IMLA) — who contributed for the report — added: “The improving outlook we can see in our macroeconomic forecast, coupled with supportive structural factors such as rising population and constrained supply due mainly to planning constraints, allows for a recovery in property prices and markets from 2025, picking up momentum from 2026 onwards.
“This in turn supports a recovery in lending to these markets despite what has been a tougher financial environment.”
