0:01 AM, 13th June 2025, About 7 months ago 4
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Buy to let investors in England can enjoy 12% price discounts when purchasing unmodernised properties, a study reveals.
Lettings and estate agents Benham and Reeves say these homes, which are in need of renovation, are priced on average 7.4% below the national market average.
And that, it says, offers a prime opportunity for landlords seeking strong returns.
Marc von Grundherr, a director of Benham and Reeves, said: “Unmodernised properties can be snapped up at a significant discount compared to the wider market which makes them a cost-effective investment for landlords who are looking for accessible ways to start or scale a portfolio.
“Given the fact that the Decent Homes Standard is widely expected to soon be relaunched with tighter guidelines, many landlords are regardless going to have to start making wide-ranging improvements and upgrades to their properties.”
He adds: “That means this is an ideal time to take advantage of the discount unmodernised properties provide.”
The research examined 36,175 unmodernised properties listed for sale across England’s housing market.
While the average house price in England is £373,156, unmodernised homes are listed at £345,504, offering a saving of £27,651.
However, regional variations reveal even greater opportunities.
In the North West, unmodernised homes cost £215,000, a 12.3% discount compared to the regional average of £245,065, equating to a £30,065 saving.
The North East follows with an 11.2% reduction, where unmodernised properties average £149,975 against a regional norm of £168,970.
Other regions also offer notable savings with the West Midlands and South East providing discounts of 9.1% and 8.1%, respectively.
In London, where property values are higher, the 7.4% discount translates to a substantial £59,000 reduction.
Smaller but still significant savings are available in Yorkshire and Humber (5.9%), the South West (5.8%), East Midlands (5.7%) and East of England (5.6%).
The South West leads in availability, with 5,982 unmodernised homes listed, accounting for 16.5% of the national total.
The South East and East of England follow with 15.6% and 13.4%, respectively, while the North West, West Midlands, East Midlands, Yorkshire and Humber, London and the North East also contribute to the pool of opportunities.
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Darren Peters
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Member Since January 2016 - Comments: 467
10:31 AM, 13th June 2025, About 7 months ago
I don’t know what others are finding but the cost of materials and building works has soared over the last 5 years and there is a glut of properties not selling – in my area at least.
Put together, the cost of a distressed property plus renovation can easily exceed the cost of just buying something that doesn’t need the work doing. A 12% discount wouldn’t cut it.
I suspect even builders that buy a spare house to soak up their team’s spare capacity so get to do the work at cost wouldn’t be rushing at 12% but interested to hear others’ experience
dismayed landlord
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Member Since December 2015 - Comments: 290
12:16 PM, 13th June 2025, About 7 months ago
Reply to the comment left by Darren Peters at 13/06/2025 – 10:31I built almost my ex portfolio on the model. I only bought properties needing work. I could do most myself. I also had good contacts for bits I could do not economically or legally. Gas / electric certificates etc.
Simply put, the money was in the property before I bought it. I would renovate to a good standard making sure that all problems were sorted correctly and for longevity. I did not want to go back every day/ month/ year doing repairs. I worked long hours but for a few weeks. Then rested and took holidays.
Rented out just below market value. Took references and guarantors with rent protection. Never looked at benefits but some ended up on benefits. Not all of them bad actually. Done about 4 evictions. 19 properties over nearly 30 years. Had a few damaged ones. Had a few arguments.
I have tried renting to councils / and housing associations . Bit of advice. Do not touch them! Disastrous. Their promises are hollow.
Been selling up now. Last one in court on 24.
Pity, as she is a good tenant. However, I live in fear of what this or any future government may throw at me and I am afraid I’ll not live with so much uncertainty.
Paul Essex
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Member Since June 2019 - Comments: 691
12:42 PM, 13th June 2025, About 7 months ago
Add in, no Council Tax exemption in many areas and the numbers begin to struggle.
Reluctant Landlord
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Member Since September 2018 - Comments: 3395 - Articles: 5
14:35 PM, 13th June 2025, About 7 months ago
increased labour costs, supply costs, utility standing charges for empty property, extra stamp duty, more tax, B2L additional costs, EPC upgrade costs, empty property council tax premium, increased building insurance (for empty while renovating), cost of planning applications for changes/extensions, delays waiting for planning decisions, possible BNG implication’s, eco surveys, waiting on gas/elec/water connections…
Properties usually in dodgy degraded areas where the only possible rental clientele are on benefits?
Oh yeah…really worth the bother….NOT