Buy-to-let is currently a stable investment choice compared to commercial, offering a typical yield of 5%.
The peer-to-peer lending platform looked at the average annual return on £500,000 across buy-to-let and commercial markets – a typical buy-to-let would return you £153,480 over five years based on its calculations. The North East of England is said to be the best area to buy, with a yield of 5.5%, followed by the North East (5.0%) and Yorkshire and the Humber (4.8%). On average commercial property is expected to net a return of 2.2%, though the average is skewed own by commercial retail, which is expected to lose you 6.2% per year. Elsewhere commercial Central London office space would offer a return of 5.8%, commercial office space would offer 6.9%, while commercial industrial provides a return of 7.6%.