New figures from Shawbrook indicate that 2024 was the year of diversification among professional landlords, who increasingly turned to semi-commercial and commercial investments to boost returns.
While overall application volumes remained steady, the bank’s internal data shows a 31% year-on-year rise in semi-commercial purchase applications and a 28% rise in commercial property purchases.
The trend reflects a clear appetite for higher yields in the professional landlord sector, as investors seek fresh opportunities in a changing market. At the same time, refinancing patterns suggest many landlords are concentrating on debt management rather than expanding existing portfolios.
Applications for refinancing without additional capital raising grew across all property types, while there was a fall in refinancing applications that involved a capital raise. Shawbrook attributes this to landlords prioritising stability in the face of high interest rates, opting to lock in fixed rates and retain current holdings.
A spokesperson for Shawbrook comments: “Professional landlords demonstrated both adaptability and caution in 2024. While many pursued higher returns through semi-commercial and commercial property investments, others focused on debt management, securing fixed-rate product transfers to protect and optimise existing portfolios.”