Buy-to-let investors are taking advantage of a sluggish property market to snap up bargains, according to Hamptons.
More than half – 56% – of investor offers last month were at least 10% below the asking price, rising to 63% among landlords paying in cash.
A total of 27% of these offers were accepted, compared to just 18% at the same time last year.
Investors made up 14% of July purchases, “securing bigger discounts in a slowing market”, according to analysis of Connells figures by Hamptons.
When the market slows, seasoned investors rarely stand on the sidelines for long.”
David Fell, Lead Analyst at Hamptons (pictured), says: “When the market slows, seasoned investors rarely stand on the sidelines for long.
“With homes taking longer to sell and chains proving fragile, landlords are using their liquidity and chain-free status to maximise their leverage when it comes to agreeing a price.
“In a market where certainty has become more valuable, these benefits tend to be worth more than in hotter markets where sellers often have multiple options on the table.”
More pragmatic
He went on to say: “At the same time, sellers who have been on the market for several months are becoming more pragmatic. This is particularly true for flat owners, where demand remains weaker than for houses, or for those selling in the South of England more generally.”
Owner-occupiers were less ambitious than investors. Last month, only 25% of offers from first-time buyers and 27% of offers from home movers in general came in at more than 10% below the first asking price.