Student housing is seen as the top property investment over the next 12 months, according to a report by mortgage lender Together. Nearly a quarter of landlords (23%) see it as the most attractive option, followed by housing developments (21%) and luxury residential properties (19%).
Despite improved interest rate stability, debt and borrowing costs remain high. Inflation (30%) and high interest/mortgage rates (27%) are cited as significant challenges by a third of property developers, landlords, and investors.
However, the commercial property market is adapting to the high-interest rate environment, with developers, investors, and landlords adjusting their portfolios to mitigate falling yields and revenues.
Rob Thomas, economist at the Intermediary Mortgage Lenders Association (IMLA), noted the need for short-term adjustments but highlighted long-term growth opportunities in the sector.
Overall, the commercial property market shows resilience, with many professionals committed to developing their portfolios despite challenges. Total secured commercial lending is expected to rise by 32% from £90bn in 2023 to £118bn in 2028.
