Market analysis by debt advisory firm Sirius Property Finance reveals the North East is currently England’s mixed-use property hotspot, providing opportunities for investors operating in commercial development.
Sirius has analysed England’s current mixed-use property market to see which parts of the nation have the largest available stock, and how the value of such developments varies from one region to another.
It’s the opinion of many industry commentators that mixed-use properties, which combine commercial and residential units into the same development - are a way to ensure the future success of the commercial sector as the nation’s reliance on commercial-only spaces such as offices and retail units diminishes.
The snapshot data shows that there are currently 5,201 mixed-use properties listed for sale in England, with an average price of £379,366.
The highest proportion of these properties are located in the North East, where 1,252 listings account for 24.1 per cent of the national whole.
The North West accounts for 12.3 per cent, and London accounts for 12.1 per cent.
The regions with the lowest proportion of mixed-use listings are the East Midlands (6.8) and West Midlands (7.6 per cent).
In terms of price, London is the most expensive region. MIxed-use properties here command an average price of £992,450 which is 161.6 per cent above the national average.
Prices in the South East are 38.3 per cent above the national average, and in the East of England they’re 4.5 per cent above average.
In the mixed-use hotspot of the North East, not only is there good availability of mixed-use properties, but these properties or developments are also the nation’s most affordable. An average regional price of £153,394 is 59.6 per cent below England’s average.
There is also great affordability in the North West (35.9 per cent below), Yorkshire & the Humber (35.5 per cent below), and the West Midlands (15.7 below).
The managing director of Sirius Property Finance, Nicholas Christofi, comments: “We know that the commercial property sector has taken a hit since the pandemic years. Retail was already struggling to maintain relevance in the face of online competition, so when lockdown forced people to stop working in the office, it was a second major blow to the sector.
“And while the residential market has proven resilient during this time, we are still dealing with a significant housing shortage. As such, mixed-use properties and developments are now believed to be the most astute way of creating more homes while also breathing life back into city and town centres.
“The North of England is leading the way for the mixed-use revolution with an abundance of stock and attractive prices that should have investors very excited indeed, especially those with the long-term vision to understand what immense value these properties could have in a few years’ time. Furthermore, the portfolio diversity created by investing in mixed-use protects investors against simultaneous voids, thus mitigating one of the most significant risks of property investment.”