Last month, Acuitus revealed that £70.6m of commercial property assets were sold at its recent auction. 

Looking for the reason behind such a high volume of sales, Acuitus felt that there was a new generation of investors which was looking for ‘bond-like’ income streams. 

Russell Martin, managing director of Finance 4 Business, said that with reducing bond yields along with savings rates at an all-time low, many investors were going it alone and investing in property.

“Residential property is still in high demand, with lettings at an all-time high. 

“Especially in [the] South East of England, it is extremely difficult for first-time buyers to get on the property ladder. 

“Taking advantage of the low interest rates on offer, investors can let out property, producing higher yields than that of bonds and property funds.”

Russell also looked at the rise in the student housing market and said that in areas such as Manchester average yields had surpassed 6%.

“With many new lenders, financing opportunities, products for prime and adverse investors, liquidity is not such a major issue. 

“Investors are far more savvy, following the financial crisis, therefore [they] can manage a portfolio better than before. 

“Many see property as a way of making good returns, hence you are seeing a wave of new investors in this sector.”

John Goodall, CEO and co-founder of Landbay, also saw a change in investor interest. 

“With interest rates at record lows and expected to remain low … and inflation pulling real interest rates down even further, investors are urgently seeking new options to find yield. 

“A more complex landscape for traditional property investment vehicles, such as direct investment in buy-to-let, has also opened a gap in the market for alternative, technology-enabled providers, like peer-to-peer mortgage lending, which are proving popular.”

John also felt that the growing amount of information and resources available to investors did help those who may not be as experienced in property investment.

“There is no doubt that more proptech products and services will spring up to capitalise on the need to support property investors. 

“As the imbalance of supply and demand in the UK property market persists, [so] does the importance and sustainability of the PRS [private rented sector]. 

“Now, more than ever, investors must do things properly and professionally, ensuring that those who rent – both out of choice and necessity – are provided with stable homes of good quality.”

Russell did have a warning for those investors looking to move into the property market, saying it was not so simple.

“Less experienced property investors are watching programmes like Homes Under the Hammer saying: ‘I can do that.’ 

“Lack of research, employment rates, demand, amenities, crime rates are just some of the areas less experienced investors miss.”

Russell concluded by adding: “The returns are there, but only if managed correctly. 

“Experienced property investors are aware of the peaks and troughs of property investing, just like any other investment. 

“Less experienced investors can learn from them and understand the pitfalls, rather than thinking it is easy.”