Karen Babington, sales and marketing director for Easier2move, said that brokers were beginning to advise that commercial deals could provide a better prospect for buy-to-let investors, as margins are increasingly squeezed.
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She said: “It is quite difficult to get returns back from residential buy-to-let. Rents have gone up with residential lending and there is far less of a return. Lenders are also restricting on rental returns, so there are a lot of opportunities to exploit buy-to-let return through commercial. Residential property is so expensive that people are moving over to the commercial side.”
Easier2move is planning to launch EasyCommercial in the next month, with six law firms on its panel that specialise in commercial. Babington said: “People need specialist advice when buying commercial property and not every high street adviser will be able to do so.”
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Commenting on the move, Mike Staight, director at Mustard Commercial Finance, said: “If people are investing in the odd property they would be better off on a straightforward buy-to-let mortgage. However for the larger investor, looking into a commercial solution is probably worthwhile.”
