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Residential or commercial – where is best to invest my money?

Letting   |   September 23, 2021   |   Lizzie

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With the UK property market continuing to perform at record levels, opportunities for investors can be found in both residential and commercial. But the question remains the same – where should I invest my hard earned money?

According to experts both markets are continuing to perform well despite being impacted by the pandemic.

While a commercial investment may offer a higher yield, the recovery timeline as a result of the pandemic is set to be far longer than the residential rental market and residential property investment remains by far the dominant force when it comes to availability, affordability and total sector value.

Chinneck Shaw Property Manager Joe Rocks said: “As with all these things, a balanced approach offers the best return for a property portfolio holder.

“However we would always encourage people to look at residential over commercial.”

The latest major industry survey seems to back up this position too. The State of the Lettings Industry Report from Goodlord and Vouch provides a temperature check of the market and involved 550 agents and 1,700 tenants.

Their report highlighted tenants are reporting strong signals of confidence around their finances.

The vast majority – 81% of tenants – said the pandemic had no impact on their ability to pay rent in the past year and the majority believe their finances are secure.

Most tenants predicted they would be staying in the rental sector for many years to come. Less than half of tenants said they would expect to own a property within five years.

 

 

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