BTL investors can save up to an average of 12.3% by buying cheaper, unmodernised properties, according to Benham and Reeves.
The London lettings and estate agent has analysed house data for 36,175 unmodernised properties in England.
Benham and Reeves defined unmodernised properties as those that “typically have kitchens and bathrooms that have not been updated for several decades, and very dated decorative schemes.”
It found that, on average, these are priced 7.4% lower than the wider market average.
The current average house price in England stands at £373,156 but the average unmodernised property can be bought for £345,504.
This discount grows in regional markets.
In the North West, the average house price is £245,065 while unmodernised homes in the region can be bought for an average of £215,000.
This creates a saving of up to 12.3%.
In London, the average unmodernised discount is 7.4% while the country’s narrowest discount, at 5.6%, can be found in the East of England region.
“Unmodernised properties can be snapped up at a significant discount compared to the wider market which makes them a cost effective investment for landlords who are looking for accessible ways to start or scale a portfolio,” said Marc von Grundherr, director at Benham and Reeves.
