Top 5 Reasons Landlords Sell Property Below Market Value
In property investment, one of the most exciting opportunities is finding a property being sold below market value (BMV). These properties can provide instant equity, stronger yields, and faster returns for savvy investors. But why would a landlord agree to sell for less than the market rate?
Here are the top 5 reasons:
1. Financial Pressure & Debt
Landlords sometimes face cash flow challenges, whether due to mortgage arrears, unexpected expenses, or wider financial strain. Selling quickly, even at a discount, allows them to release funds, clear debts, and move on without the risk of repossession. For investors, this presents an opportunity to secure a high-value asset at a reduced price. Read our blog on depreciation, the more informed you are when investing the better you will be able to prevent the problem in the first place.
2. Tighter Regulation & Increased Taxation
Over the past decade, UK landlords have faced a wave of new rules—such as restrictions on mortgage interest relief, higher stamp duty surcharges, and stricter licensing requirements. For some, these changes have eroded profits and made property investment less appealing. Selling below market value can be a way to exit quickly without the hassle of waiting for the “perfect buyer.” To find out more about interest rates, click here.
3. Portfolio Restructuring
Not every discounted sale is a sign of distress. Professional landlords often adjust their portfolios to focus on higher-yielding assets, different property types, or alternative locations. To sell quickly and free up capital for reinvestment, they may accept a slightly lower price—especially if it means avoiding long void periods or drawn-out sales processes.
4. Problem Tenancies
Difficult tenants, high arrears, or ongoing maintenance issues can cause landlords to cut their losses. Rather than dealing with prolonged disputes or expensive refurbishments, some prefer to offload the property quickly—even if it means accepting less than full market value. Investors who can handle refurbishments or tenant management see this as an opportunity to add value.
5. Need for a Fast Sale
Life circumstances such as relocation, retirement, or inheritance can create urgency. For landlords in these situations, speed is more important than price. By agreeing to sell below market value, they can achieve a quick, hassle-free exit, while buyers benefit from instant equity.
Final Thoughts
While buying below market value may sound too good to be true, there are very real and practical reasons why landlords sell at a discount. For investors, these deals represent an excellent way to secure immediate equity and stronger returns. If you want to find more information on how to get start investing in property read out blog on this topic.
To capitalise on these opportunities, it’s crucial to know where to find them and how to structure the purchase. That’s where working with a professional property sourcer like O Johnston & Co makes all the difference. With access to exclusive off-market deals and the expertise to navigate negotiations, they can help you uncover opportunities that most investors never see.
