Shawbrook’s latest internal data revealed a boost in semi-commercial BTL deals, with the number of applications received by the bank having almost doubled in 2024 compared to 2023.
So far this year, Shawbrook has seen 24% of semi-commercial applications for new purchases, compared to just 13% in 2023.
According to the bank, this suggests that landlords are increasingly turning towards semi-commercial property investments, as they are looking to expand their portfolios with higher-yielding assets.
The South East has been a particular attractive target for investors, with 39% in 2024 looking towards the region, compared to 27% in 2023.
In terms of the types of semi-commercial properties landlords have invested in, 60% sought retail spaces with flats above.
Daryl Norkett, director of real estate proposition at Shawbrook (pictured above), commented: “Property investors are adapting to a higher interest rate environment, with portfolio landlords taking the opportunity to grow their businesses with a wider range of assets.
“We’re already seeing this in the applications we’ve been receiving recently, with investors looking towards property types like HMOs, social housing, and semi-commercial properties that tend to offer higher rental yields than traditional single lets — these opportunities are property specific, but can be very attractive to investors.
“Semi-commercial properties in particular have the added benefit of having both commercial and residential space, meaning that landlords can enjoy higher yields with a mix of income streams.
“Those interested in exploring the semi-commercial market or diversifying their portfolios should speak to a broker to better understand their options.”
