One-in-five landlords (19%) are considering diversifying into commercial property, according to recent research from Shawbrook.

In the midst of economic volatility and uncertainty within the property market, landlords are looking for ways to diversify their properties and adapt their strategies in order to future-proof their portfolios. More than a third (37%) of landlords who are planning to invest in commercial property cited diversification as the key reason for doing so.

Those who already own commercial properties are also planning to expand further, with 35% of landlords with commercial assets stating that they are looking to invest in more in the near future as they have noticed an increase in demand for commercial property and view it as a good investment opportunity.

Emma Cox, MD of real estate at Shawbrook, said: “Fluctuating prices and high borrowing costs are hampering confidence in the residential property sector. As a result, landlords are looking for other ways to diversify their portfolios and cater for current demand. The increase in workers returning to offices and the evolution of local highstreets are two examples of areas where landlords will be seeking opportunities to invest, and those who already own commercial properties will be looking to add more.”