Student housing is seen as the most appealing property investment in the next 12 months, according to a report from the mortgage lender Together entitled ‘Opportunities and Outlook; the future of commercial property’.

The report says that almost a quarter (23%) of landlords reckon student housing offers the most appealing property investment in the next 12 months, followed by housing developments (21%) and luxury residential properties at 19%.

Chris Baguley, group channel development director at Together, said: “As we look at the UK commercial property landscape, the scope and diversity of the opportunities is impressive. Whether its student housing, housing/residential development or repurposing retail and other larger sites, the next few years are going to provide significant growth for the UK commercial property market.

“The optimism of the sector, combined with the economic recovery, mean those investors that are well poised with the right finance support will ultimately be in the best position to capitalise on these opportunities.”

Commercial lending is expected to swell from £90bn in 2023 to £118bn in 2028. While the turbulence evident across interest rates throughout 2023 has eased, debt and the cost of borrowing continues to be at peak levels – with a third of property developers, landlords and investors citing inflation (30%) and high interest/mortgage rates (27%) as the biggest challenge to plans this year.