Commercial Mortgages Eastney

The Eastney commercial property market

Eastney is the most residential-heavy of the Portsea Island sub-markets and the quietest commercial mortgage submarket in central Portsmouth, but the mixed-use frontage along Eastney Road has been rising steadily through 2024 to 2026 as the wider PO4 residential market has absorbed neighbourhood retail and F&B demand from the dense surrounding terraced grid. The Eastney Road parade combines a small independent convenience retail and takeaway tenant mix, a handful of independent restaurant and cafe operators, and a small Class E plus flat above semi-commercial stack that funds on blended ICR. Around the parade, the Eastney seafront edge from Fort Cumberland to the Eastney Lake carries a small but growing holiday-let and short-let portfolio that links into the wider Southsea Seafront short-let economy.

Transactions are dominated by long-hold private investors on Eastney Road parade semi-commercial, owner-occupier independents buying their neighbourhood retail unit, and a steady flow of small holiday-let portfolio acquisitions along the seafront fringe. The deep-volume zone for our PO4 Eastney commercial mortgage book sits in the £300K to £1.2M bracket, neighbourhood retail freehold, Class E plus flat semi-commercial, small independent F&B and small holiday-let portfolios. Pricing currently 7.0 to 8.5% pa for clean PO4 neighbourhood semi-commercial investment along Eastney Road, with strong-covenant convenience retail at 6.5 to 7.5% and independent F&B and holiday-let portfolio at 7.5 to 8.5%. Refinancing volumes picked up materially through 2025 and 2026 as five-year fixes from 2020 and 2021 matured.

HM Land Registry residential transactions inside the PO4 Eastney catchment cluster around the Eastney Road and Henderson Road terraced grid, with recent files including the Fordingbridge Road PO4 9JW Southsea terrace at £367,000 that signals the wider PO4 terraced market that underpins both the Class E plus flat semi-commercial rental stack and the rising holiday-let portfolio supply. They are not a direct commercial signal but they confirm that PO4 Eastney continues to absorb residential demand, which underwrites the ground-floor neighbourhood retail and F&B, semi-commercial and holiday-let income that most of our Eastney commercial mortgage lending sits against.

Active commercial property types in Eastney

Lender appetite for Eastney Road mixed-use, neighbourhood retail and PO4 portfolio

Rising mixed-use and semi-commercial is the deepest single sector in Eastney. Shawbrook, InterBay Commercial and Allica Bank dominate the Eastney Road Class E plus flat above semi-commercial and rising mixed-use bracket at 65 to 75% LTV and 7.0 to 8.5% pa on blended ICR. Cynergy Bank sits at the top of our shortlist on Eastney Road independent restaurant, cafe and takeaway operator freehold, prime independent stock at 60 to 70% LTV and 7.0 to 8.5% pa on EBITDA cover at 1.5 to 1.8x. LendInvest covers refurbishment and bridge-to-let where the Eastney Road parade is being repositioned, including the canonical 25/01345/FUL Eastney mixed-use archetype with managed residential above. Lloyds, NatWest, Barclays and Santander compete on the largest Eastney Road and neighbourhood retail investment freeholds at 60 to 70% LTV and 6.5 to 7.5% pa. Allica Bank is active across South Coast neighbourhood retail and small mixed-use on Eastney Road owner-occupier and investment freehold. HTB, Cambridge & Counties, Paragon, Together and YBS Commercial take selected PO4 semi-commercial, HMO portfolio and holiday-let portfolio deals, with Paragon prominent on PO4 HMO and holiday-let portfolio refinance and Together active on small mixed-use repositioning. Hampshire Trust Bank is headquartered in Hampshire and brings strong local knowledge to Eastney Road mixed-use, PO4 holiday-let portfolio and neighbourhood retail freehold deals. Refinancing on a stabilised Eastney Road mixed-use block or Class E plus flat semi-commercial asset typically prices 7.0 to 8.5% pa at 65 to 75% LTV. Commercial mortgages are unregulated lending and fall outside the FCA regulated mortgage perimeter, we do not hold FCA authorisation because the products we arrange are unregulated.