How to Find Below Market Value Properties in the UK

In October 2023, the average house price in the UK was £287,782, according to the UK House Price Index. This price can be daunting when you take a glance, but it does not tell the entire picture.

Not only does the national average consider areas like London, where property prices are far above the rest of the nation, but there are also areas of the UK where it is much easier to find below-market-value properties.

Try looking in areas such as the North-West, where property prices are growing at some of the fastest rates in the UK. This means you will achieve more capital appreciation over time, as high growth combined with low prices is ideal for a high return when selling a property.

For example, Liverpool’s average price is far below the national average, meaning you are more likely to get below-market-value properties for sale in this city.

As of January 2024. Zoopla data indicates that the average price of property sold in Liverpool is £189,445, with certain property types like flats being even cheaper, coming in at £159,563. Given that Liverpool is one of the best areas to invest in right now, thanks to high rental yields and low prices, this is a great example of how to find below-market-value properties by looking in the right area.

Portals like Rightmove and Zoopla are great for finding properties on the market thanks to the wide range of filters and options they have.

If you are wondering where to find below-market-value properties, portals can be one of the best places to go as they allow you to do your research.

By selecting the right filters, you can find BMV properties without having to deal with the hassle of meeting estate agents and physically visiting properties.

Once you have found areas with high rental yields, try looking up the postcodes in a portal like Rightmove or Zoopla.

By using different filters such as ‘Most Recent’ to see which properties are newest on the market, ‘Most Popular’ to see the homes that are viewed the most and ‘Lowest Price’ to find the cheapest properties, you can find a lot of different options.

From these, you may find a diamond in the rough, but it will take due diligence and lots of research to make sure the property is below-market-value for the right reasons. For instance, it should be below-market value because it is below the radar, and not because it doesn’t meet the standards that modern renters look for.

Some of the best below-market-value properties in the UK are not on the open market and are instead sold exclusively through property investment companies.

Off-plan properties like this are not currently fully completed and are still being constructed, which means they are often sold for below-market-value prices.

There is a wide range of benefits to buying off-plan, and they usually make for a fantastic investment opportunity.

Because they are still being constructed, they will be brand-new developments and so will avoid issues that older properties may face such as wear and tear or damage.

They are also often situated in areas with high regeneration, to make the most of the transformation that this money will bring in.

These properties combine many of the key things to look for when searching for below-market-value properties that we have already mentioned.

As off-plan properties are often more affordable, you may not need to worry about borrowing a buy-to-let mortgage. With mortgage rates rising at rapid levels at the minute, it may be better to avoid borrowing one if you can.

With off-plan properties, you can usually agree to set up a payment plan to help spread out the cost of investing, thereby avoiding the need for BTL mortgages.

As you can see, off-plan properties are some of the best below-market-value properties on the market, able to net you high returns with affordable prices.

One of the newest properties to become available, The Prestige is located in the heart of Liverpool and is sure to appeal to the city’s growing population of young professionals.

Just a short walk away from Ropewalks and LiverpoolONE, the Prestige is unique in that it is already completed and tenanted, so investors will begin earning returns far quicker than with traditional off-plan properties.

With access to a fully-equipped gym, rooftop terrace and resident’s lounge, the Prestige has guaranteed 6% NET returns for the first year as well as some of the most affordable prices for inner-city living.

This is one of the best below-market-value investment properties available in the North-West right now, and one that every investor should be looking at.

With some of the best prices in Liverpool, Central Park combines fantastic luxury apartments with the very best of modern living.

Being situated in the Baltic Triangle, the trendiest place to live and work in Liverpool, Central Park is right next to a brand-new underground station offering great transportation links. Overlooking a public park will allow for uninterrupted views of the city, adding a sense of nature and greenery to the development.

On top of this is an outdoor gym, access to gardens and the park, as well as 6% ASSURED returns for the first year. Central Park is a seriously underrated off-plan development available for below-market-value prices.