Below-market value (BMV) properties are residential properties sold at a price lower than their market value, primarily due to the owner’s need for a quick sale. A recent study by Apex Bridging has shed light on where potential buyers can find these BMV properties. The research, covering both the number and current value of quick-sale properties on the market, offers valuable insights into regional variations in BMV property availability.
North West – A Hub for BMV Properties
The North West emerges as a prime region, accounting for 17% of the current quick-sale property stock. This high percentage indicates a robust opportunity for buyers looking for deals in this area.
Yorkshire and the Humber, and the South East
Following closely are Yorkshire and the Humber and the South East, with 15% and 14% respectively. These regions offer a substantial portion of the quick-sale market, providing ample opportunities for savvy investors.
London – Limited but Lucrative
London, on the other hand, holds just 4% of the BMV market. However, despite its limited stock, the capital city offers the most significant savings in absolute terms, making it a lucrative but competitive market for BMV property seekers.
Financial Implications
BMV properties offer considerable financial advantages. The average price of such properties stands at £234,570, significantly lower than the average house price across England, which is around £310,000. This disparity translates into a potential saving of 31%, or £75,430.
Regional Price Comparisons
In regions like the North East and North West, the average BMV property is about 30% more affordable than the regional average house price. These areas, therefore, offer some of the most significant percentage discounts.
In London, the scenario is different. The absolute savings can be close to £80,000, highlighting the city’s high property values and the substantial discounts available through BMV deals.
Market Dynamics and Buyer Readiness
Chris Hodgkinson from Apex Bridging notes the shift in market dynamics due to higher mortgage rates. This change has affected both buyers’ purchasing power and sellers’ price expectations. However, a segment of sellers, driven by the urgency to sell, are willing to list their properties at BMV prices. For buyers, this means a considerable discount, provided they are prepared to act quickly.