Landlords exploit softer market with lowball offers

Published on

More than half of buy-to-let investor offers were at least 10% below the original asking price in July as landlords used their chain-free position to negotiate harder, Hamptons has reported.

Investors accounted for 14.1% of property purchases across Great Britain during the month, above the year-to-date average of 12.4%.

Some 56% of landlord offers in England and Wales were at least 10% below asking, rising to 63% among cash-funded investors.

The average landlord ultimately paid 88.7% of the property’s initial asking price, according to Hamptons’ analysis of Connells Group data.

SELLERS ACCEPT BIGGER DISCOUNTS

Sellers accepted 27% of investor offers made at least 10% below asking, compared with 18% in July 2025.

Leasehold sellers proved particularly receptive, accepting 41% of heavily discounted offers amid weaker demand for flats.

Properties where a low offer was accepted had spent an average of 140 days on the market, with many having already undergone price reductions.

By comparison, homes where investors secured a price within 10% of asking had typically been marketed for 45 days.

The South East recorded the highest proportion of low investor offers at 70%, followed by the South West at 60%. London had the lowest proportion at 30%.

Owner-occupiers negotiated less aggressively, with 25% of first-time buyer offers and 27% of home-mover offers coming in at least 10% below asking.

RENTAL GROWTH ACCELERATES

Annual growth in rents on newly let homes increased for an eighth successive month, reaching 1.9% in July – its strongest rate for 19 months.

The average new let in Great Britain cost £1,401 per month, compared with £1,258 across all tenancies.

Wales recorded the fastest new-let growth at 4%, followed by the South West at 3.7% and West Midlands at 3.3%.

David Fell (main picture, inset), lead analyst at Hamptons, said: “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.

“While higher borrowing costs continue to weigh on investment returns, landlords with cash or low levels of borrowing are finding that a slower market is creating opportunities to purchase at significantly lower prices.”

He added that accelerating rental growth was providing landlords with a counterweight to higher borrowing costs.

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Asking prices suffer biggest August fall since 2018

The average asking price of a newly listed home fell by 2% in August,...

Instamo launches automated post-submission mortgage tool

Instamo has launched FastAdmin, a post-submission automation service designed to reduce the administrative work...

HMLR and OS data tie-up targets faster property transactions

HM Land Registry (HMLR) and Ordnance Survey (OS) have agreed a three-year collaboration intended...

FCA bans CEO over fake €200m bond portfolio

The Financial Conduct Authority (FCA) has fined and banned two former Blue Horizon Asset...

Pivotal reports 121% growth in second charge lending

Pivotal has reported a 121% year-on-year increase in second charge lending through its Believe...

Latest publication

Other news

Asking prices suffer biggest August fall since 2018

The average asking price of a newly listed home fell by 2% in August,...

Instamo launches automated post-submission mortgage tool

Instamo has launched FastAdmin, a post-submission automation service designed to reduce the administrative work...

HMLR and OS data tie-up targets faster property transactions

HM Land Registry (HMLR) and Ordnance Survey (OS) have agreed a three-year collaboration intended...