Buy-to-let landlords targeting high street

Buy-to-let landlords are switching to commercial property investment despite the current malaise afflicting the high street, an industry expert has claimed.

Paul Smith, chief executive of Helensburgh-based Touchstone Education, said that investors still see a bright future for bricks-and-mortar retailers.

The sector has been hit by a string of failures including the loss of BHS, Toys-r-us and Maplin, while other chains have been downsizing, such as Marks & Spencer, Mothercare and House of Fraser.

Recent government measures have made investment in residential property less attractive, prompting many to invest in vacant retail units in town and city centres, according to Smith.

Touchstone, which runs seminars across the UK offering advice to people about investing in property, said it has seen a big slowdown in demand for places on residential buy-to-let courses and a jump in demand for commercial investment advice.

Smith said: “While great swathes of the British middle classes appear to be signalling the death knell for the high street as customers, they are giving it a massive vote of confidence as investors.”

“Commercial property is an attractive investment for other reasons; unlike with residential buy-to-let, the landlord is not responsible for maintaining or improving the property. That is the duty of the tenant and is included in their lease.

“Those investors can’t foresee the future of the high street but, clearly, they believe it has a future,” he added. 0 Paul Smith: ‘massive vote of confidence as investors’