Buy-to-let investors are negotiating larger discounts on property purchases as market conditions soften, with more than half of investor offers in July coming in at least 10% below asking prices, according to data from Hamptons.
Analysis of Connells Group figures shows that 56% of investor offers last month were pitched at 10% or more below the asking price, rising to 63% among cash-buying landlords. Acceptance rates for these lower offers have also increased, with 27% being accepted compared to 18% at the same point last year.
Investor activity increases
Investors accounted for 14% of all property purchases in July, taking advantage of extended sale times and fragile chains to negotiate better terms. The data suggests that landlords’ chain-free status and available liquidity are providing stronger negotiating positions in the current market.
David Fell, Lead Analyst at Hamptons, said: “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.”
He added that sellers who have been marketing properties for several months are becoming more willing to accept lower offers, particularly for flats where demand remains weaker than for houses, and in southern England more broadly.
Owner-occupiers less aggressive
In contrast, owner-occupiers are submitting less aggressive offers. Only 25% of first-time buyer offers and 27% of home mover offers came in at more than 10% below the initial asking price last month.
The findings come as letting agents face increasing scrutiny over tenant selection amid broader changes in the rental sector.
Fell noted that in slower markets, the certainty offered by cash buyers and chain-free investors holds more value for sellers than in more active markets where multiple offers are common.
The data indicates a shift in market dynamics, with investors positioned to capitalise on softer conditions while owner-occupiers maintain more conservative bidding strategies.
