Investors owning properties in the £150,000 to £299,999 price range may find it challenging to make their portfolios stand out in this increasingly competitive market.
A recent analysis of 796,847 property listings has revealed that a significant proportion of available properties are within this price range, making it a hotspot for competition. The research found:
- 86,100 residential properties listed between £150,000 to £199,999 (10.8% of total listings)
- 85,029 properties fall within the £200,000 to £249,999 bracket (10.7%)
- 84,180 properties are in the £250,000 to £299,999 segment (10.6%)
Collectively, these properties make up a third of the market stock.
For property developers, investors and buy-to-let landlords, this crowded segment necessitates a strategy to ensure that their investment not only stands out from the crowd but also delivers maximum returns.
Colby Short, CEO of GetAgent, which conducted the research, said property owners looking to sell their property in current market conditions “face a far tougher task than their pandemic predecessors, with fewer buyers fighting it out for available stock.
This means those who have listed their property for sale in the most congested area of the market with regards to price are not only trying to attract a smaller number of buyers, but they are doing so with the most competition from other hopeful sellers.”
Driving ROI through value-added improvements
To ensure maximum return on investment, Short suggests that the key to unlocking significant ROI lies in strategic, value-added improvements. Even smaller changes like landscaping or an EV charging port can catapult a property past the £300,000 threshold, thereby positioning it favourably in front of a new segment of potential tenants or buyers. For example:
Loft conversions or extensions: Ideal for adding extra bedrooms or living space, this can significantly raise rental yields and property value, increasing it by approximately £44,000.
Garage conversions: By transforming garages into usable space, landlords can appeal to a broader tenant base while adding about £30,000 to a property’s value.
Garden office: With the rise of remote work, a garden office can appeal to potential tenants and increase a property’s value by around £22,000.
Conservatories, kitchen upgrades, utility rooms and solar panels: Each can contribute a five-digit increase in the asking price, enhancing both the property’s sale and rental appeal.
Roof replacement, double glazing and bathroom upgrades: Essential for long-term maintenance can add between £8,000 to £9,000 in value.
Boiler Replacement, EV charging points and landscaping: These minor additions can enhance a property’s appeal to eco-conscious tenants and buyers, boosting property values by £4,000 to £5,000.
For property investors, developers and landlords, understanding these dynamics could be key to maximising returns in today’s competitive market.