The Intermediary – January 2026 - Flipbook - Page 54
SPECIALIST FINANCE
Opinion
S
easoned landlords are
increasingly viewing
mixed-use properties
as an aractive and
profitable asset class.
Faced with higher interest
costs, tighter regulation and sustained
pressure on margins, many are
finding that mixed-use offers a more
flexible and resilient way to diversify
portfolios.
This shi is being driven by a
combination of tax advantages,
strong yield potential and changing
market dynamics. For brokers, it is an
important trend to understand.
Mixed-use is no longer a niche
play; it is becoming a core strategy
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The Intermediary | January 2026
for professional landlords seeking
value, income stability and long-term
growth in a more challenging market.
One of the most significant
advantages is the difference in Stamp
Duty costs compared to purely
residential properties. Mixed-use
properties do not aract the 5%
surcharge applied to additional
residential properties.
For example, a portfolio landlord
buying a residential property valued
at £500,000 would pay £40,000 in
Stamp Duty, while the equivalent
mixed-use property would cost only
£14,500. That’s a saving of £25,500,
which directly improves return on
investment, as well as providing
options for further investment in
properties with the remaining funds.
Combined with the ability to
achieve higher yields than standard
buy-to-let (BTL), mixed-use becomes a
powerful diversification tool.
These assets also bring the benefits
of diversified risk, with income
streams from both commercial and
residential markets. Commercial
tenants oen sign longer leases,
providing predictable income, while
residential units offer confidence in
quick occupancy. This blend creates
resilience, especially valuable in
uncertain economic conditions.
As high streets evolve and demand
for traditional retail space changes,
