"Whilst the number of unmodernised properties coming to market has reduced, the appetite from investors certainly hasn't and, with fewer opportunities available, competition for the remaining stock is only likely to intensify"
- Jonathan Samuels - Octane Capital
For landlords and property investors hunting value-add opportunities, the pool of available stock is getting smaller.
New research from specialist lender Octane Capital shows that unmodernised properties listed across England have fallen 17.1% over the past year, from 36,175 to 29,981, with every region recording a decline. Those still in the market for refurbishment projects face steeper competition and a narrowing window to act.
The strategy is well established: acquire below market value, carry out refurbishment works, then either refinance onto a buy-to-let mortgage or sell at a profit. What's changing is how quickly viable stock is being absorbed.
The West Midlands has seen the sharpest regional fall, with available unmodernised homes down 24.9%. The North West follows at 24.1%, with Yorkshire and the Humber not far behind at 21.6%.
For investors with flexibility on location, the South West currently offers the greatest concentration of opportunity, holding 17.2% of all unmodernised stock across England. The South East accounts for 16.6% and the East of England 14.3%, though supply is tightening across all three.
The practical challenge for many landlords and investors is that unmodernised stock frequently falls outside mainstream mortgage criteria. Structural problems, outdated systems, and low EPC ratings can make these properties unmortgageable through conventional routes, particularly where refurbishment is needed before the asset reaches a lettable or habitable standard.
Specialist refurbishment finance addresses that gap directly, giving investors the ability to complete quickly on poor-condition stock and draw down funds for works without waiting on a mainstream lending decision.
That speed advantage matters most at auction, where 28-day completion deadlines are standard, and on derelict or heavily distressed properties where mainstream lenders simply won't lend. In a market where competition for the remaining stock is only likely to intensify, the difference between securing a deal and losing it often comes down to how fast a buyer can move and how certain their funding is.
"Whilst the number of unmodernised properties coming to market has reduced, the appetite from investors certainly hasn't and, with fewer opportunities available, competition for the remaining stock is only likely to intensify," said Jonathan Samuels, chief executive of Octane Capital (pictured).
"These homes continue to offer significant value-add potential, whether through refurbishment, extension, conversion, or simply bringing them back up to modern standards."
"However, many are not suitable for mainstream mortgage finance in their current condition, which means investors need access to specialist funding in order to act quickly," he added.
"Bridging and refurbishment finance play an increasingly important role here, allowing investors to secure opportunities as soon as they arise and fund the works required to unlock their full value."
