The commercial property market may be a surprising benefactor of the investment landscape’s pessimism. We’re reminded constantly of how property investors, and residential investors specifically are struggling. The situation will only get worse, and landlords across the UK are in a real pickle.
The validity of all this alarmism is questionable. Nonetheless, many BTL investors are taking steps to avoid looming challenges. From the looks of things, many are turning to the commercial market for a solution. What’s more, they seem to be after a quick result.
What’s going on in some of our biggest auction houses is telling. Allsop raised £64m at its September commercial auction, setting a new record for live-streamed commercial auctions in the UK and achieving a success rate of 74%.
Similar results were recorded at Savills, which has seen a dramatic uptick in retail auctions this year. The number of lots sold between January and September rose by 58% year-on-year. Historically, as Savills highlighted, auctions tend to lead the wider market, meaning we could see growing investor confidence in the commercial scene over the coming months.
With residential sentiment comparatively subdued, and the outlook for the commercial market improving, perhaps we’ll see more investors change tack as we move into 2026. With the Renters’ Rights Bill and the Autumn Budget on the horizon, many landlords are likely considering how best they can adapt while still remaining profitable.
In fact, recent analysis from Landbay revealed 15% of surveyed landlords plan to sell up to 10% of their properties over the coming year or so. But, buying intentions are rebounding too, with the same survey showing 52% intend to purchase new rental properties in the coming months.
As property investors look to redistribute their capital, the commercial property market may look increasingly attractive. In many ways, the results speak for themselves. Knight Frank data shows annualised UK All Property returns reached 8.59% in July 2025, the strongest result seen since September 2022. Within this, industrial was the top-performing sector, followed by retail, with both generating more growth than residential.
Post-budget, and as we get a clear date for the Renters’ Rights Bill, there could be a rush of investment in commercial real estate. Thankfully, the specialist market will be able to facilitate this with speed, and flexible commercial financing options.
