The latest research by property finance specialists, Apex Bridging, has revealed where the nation’s homebuyers have the best chance of snagging a deal in the current market, based on the number of below market value (BMV) transactions in the UK.
Below market value (BMV) properties are residential properties sold at a lower price due to the owner needing a quick sale.
Apex Bridging analysed both the number and current value of quick sale properties currently on the market to reveal where potential buyers could be quids in by opting for a BMV property.
Due to the slowdown of the UK housing market, the level of BMV transactions has significantly increased. The research shows that there are currently almost 4,300 quick sale properties listed for sale on the market across England.
Homebuyers in the North West have the best chance of snagging one, with the region accounting for 17% of current quick sale property stock.
Both Yorkshire and the Humber (15%) and the South East (14%) are also home to a high proportion of quick sale stock, while London is the least likely region to find a BMV property, accounting for just 4% of all quick sale homes currently on the market.
But just how much could a BMV property save you?
The figures from Apex Bridging show that the average price of a BMV or quick sale property currently stands at £234,570. With the current average house price across England coming in at £310,000, a BMV property could see you climb the property ladder for 31% less – a saving of £75,430.
While the North East is home to some of the lowest BMV property availability, it’s also home to the biggest potential discount in current market conditions, along with the North West. The average BMV home in both regions is some 30% more affordable than the wider average house price.
However, it’s London that boasts the biggest saving in pounds and pence. Homebuyers lucky enough to snag a BMV property in the capital stand to save almost £80,000 in the current market.
Managing Director of Apex Bridging, Chris Hodgkinson, said, “In recent times, buyers have had to adjust to the new normal of higher mortgage rates and this has reduced their purchasing power in the market, meaning sellers have also had to adjust their asking price expectations.
However, there’s always a segment of sellers who are happy to do this as their need to sell is far more urgent and it’s these properties that are classed as below market value properties.
For buyers, it means a considerable discount provided they are ready to act, but the availability and discount of BMV properties does differ depending on which region you have focussed your property search.”