Professional landlords focused on higher-yielding properties in 2024 as diversification became a key theme, Shawbrook has found.
In an analysis of internal data, Shawbrook found a clearer appetite for diversification.
In 2024 there was a 31% year-on-year rise in semi-commercial purchase applications, while commercial purchases increased by 28%.
As well as prioritising such higher-yielding assets, a cautious approach was identified in how landlords refinanced existing portfolios.
Applications for refinancing without additional capital raising increased across all property types, while refinancing with capital raise applications declined.
This suggests landlords are prioritising debt management in the current high-interest rate environment.
Commenting on these findings, Shawbrook director of real estate proposition Daryl Norkett said “2024 was the year of diversification for professional landlords.”
“Clearly many professional landlords are adapting to market conditions with a clear strategy.”
“At the same time, the more cautious landlords are focusing on managing existing debt carefully, securing stability through fixed-rate product transfers to continue to manage and grow their property businesses.”
