Narrowing yields in the residential lettings market are leading buy-to-let investors to look at commercial property as the next investment hot-spot, according to the Property Investor Show.
Research from Mortgages for Business shows that 89 per cent of investors who currently do not invest in commercial property have plans to widen their portfolio to include commercial properties.
Mortgages for Business managing director David Whittaker says: “The residential buy-to-let market has seen a tightening in rental yields over the past year with more and more investors taking a long-term view towards capital appreciation. Securing investment finance for commercial property has probably been the largest barrier for most would-be investors. However, there are now a number of new investment products on the market offering 'off the shelf' mortgages similar to those for the residential buy-to let market."