Mixed-use property
Properties combining commercial and residential parts, such as a shop with a flat above.
In plain English
A shop with a flat above is a common mixed-use investment. You get two kinds of income, but also two sets of rules. Mixed-use purchases pay SDLT at non-residential rates.
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Capital requirements
Commercial-style deposit (often 25–40%).
Cost assumptions to budget for
- Non-residential SDLT
- Commercial and residential compliance
- Separate insurance considerations
Potential returns
Blended yield of both parts.
Main risks
- Commercial void
- Shared services and access issues
Legal checks
- Separate leases and access rights
- Planning use classes
Regulatory checks
- Residential landlord rules for the flat
- Commercial MEES and rates for the shop
Is it suitable?
Often suits
- Investors comfortable with both regimes
Usually not suitable for
- Those wanting a single simple tenancy
A general guide, not a personal recommendation. Suitability depends on your finances, experience and attitude to risk.
Step-by-step
- Value both parts.
- Check leases and planning.
- Run commercial and residential calculators.
- Arrange specialist finance.
Financial calculations
Commercial / mixed-use yield
- ⚠ Mixed-use purchases also use non-residential SDLT rates.
Every figure above comes from the assumptions you entered. This is not a valuation, mortgage offer or financial advice.
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Official sources
Last reviewed 31 Oct 2026. Rules change — check the source before relying on this guide.
Not advice