Landlords shifted their focus towards higher-yielding property types like semi-commercial and commercial property purchases in 2024, Shawbrook data shows.
As a proportion of all applications submitted with the lender, semi-commercial purchase applications rose by 31% year-on-year, while commercial property purchases increased by 28%.
Daryl Norkett, director of real estate proposition at Shawbrook, said: “2024 was the year of diversification for professional landlords.
“We saw them shifting their focus towards higher-yielding opportunities like semi-commercial and commercial properties, demonstrating their resilience and adaptability in a challenging market.
“Clearly many professional landlords are adapting to market conditions with a clear strategy.”
At the same time, refinancing trends revealed a cautious approach to managing existing portfolios.
Applications for refinancing without additional capital raising increased across all property types, while refinancing with capital raise applications fell.
This suggests landlords are prioritising debt management in the current high-interest-rate environment, opting to secure fixed rates through product transfers.