How To Find & Buy Off-Market Properties
Off-market properties represent an increasingly significant portion of UK property sales and could open up some great opportunities for active investors who are well-connected to find these types of investment properties.
Whether you are actively seeking to source off-market investment properties or simply wondering what "off the market" means and can you find them on portals like Rightmove.
This comprehensive guide explains everything property investors need to know about finding and buying these hidden properties.
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by Robert Jones, Founder of Property Investments UK
With two decades in UK property, Rob has been investing in buy-to-let since 2005, and uses property data to develop tools for property market analysis.
What is Off-Market Property?
The meaning of off-market property is very simple.
Most property for sale is offered 'on the market', openly via methods such as estate agents, property portals or online property auctions.
However, an off-market property is a property which is not being openly offered for sale on the market and is often sold directly by the seller or to a close network of buyers known by the agent if the seller has indicated they would like a more discreet sale.
The off-market property market is sometimes called the ‘secret property market’ and is appealing to buyers as it helps them access property investment opportunities that the average buyer cannot get.
Landlords and investors also like the potential to buy the property below market value, which can be possible when the seller is only speaking with a small pool of buyers and is looking for other benefits of a sale like a quick transaction, cash buyer or no publicity.
How Much Property is Sold Off-Market?
Off-market property sales are a larger portion of the market than is often realised.
The latest property data from HMRC and the UK Government show two datasets for property purchase transactions for all property sales across the UK.
Seasonally adjusted residential transactions increased by 10% from 91,690 in September 2024 to 100,410 in October 2024. Non-seasonally adjusted residential transactions increased by 17% in October 2024 to 111,100 relative to September 2024. This is the highest monthly non-seasonally adjusted figure since November 2022.
Government UK property transactions commentary dataset here
In Hamptons 2024 Spring off-market property report, they estimated that in 2023 around 7.4% of all homes were sold off market and a staggering 33% of homes over a £1 million price tag.
There is no definitive source of exactly home many properties are truely sold off-market as it would require cross referencing every single property transaction from Land Registry with every single property advertised.
We can however do a rough calculation to get a guide.
For example if we take the two datasets above, the UK Government property data for sold transactions is 111,100. If 7.4% of those properties were actually sold off market as per Hamptons data.
Then as a guide we are looking at round 8,221 homes were sold off-market in October 2024.
That is a lot of property being sold that smart investors and well networked landlords could have access to.
It's important to remember that off-market property is not the same as off-plan property. Off-plan property is property which is offered for sale before it is built and attracts different buyers. Occasionally off-plan property may be sold off-market, however.
Why Do Buyers Buy Off-Market?
Buying off-market means there is less (or even no) competition from other buyers. The whole process should be much less stressful. It avoids the process of offers and counter offers from third parties which often draws out the sales process and pushes up prices.
This means that buying off-market can be a particularly useful technique in a hot property market when there is intense competition for every property on the market and means you won't have to negotiate with estate agents.
Another very good reason why buyers look to buy off-market is in the hope of buying a property they want at a good price – and potentially below market value.
As is the case for sellers, buyers also appreciate the confidentiality that buying off-market can offer them.
Why Do Sellers Choose Off-Market Sales?
Understanding why properties sell off-market helps investors identify and access these opportunities. Common motivations include:
Confidentiality and Privacy
Property owners, particularly high-net-worth individuals and celebrities, often prefer private transactions to maintain confidentiality. This approach prevents business contacts, creditors, neighbours, or others from knowing about the sale.
Testing the Market
Some owners use off-market listings as a pre-marketing exercise, testing potential interest before deciding whether to sell. They can even test prices to see if there is interest at a price that works for them. Others might have received an unexpected offer despite having no initial intention to sell.
Simplified Process
Off-market sales typically involve fewer viewings and negotiations, appealing to sellers who prefer a streamlined process. Some choose this route to avoid estate agent fees or the complexity of dealing with multiple interested parties.
How to Find Off-Market Property Deals
It can be quite difficult to find an off-market property to buy. By definition, you will not find off-market property advertised for sale at estate agents, on a property portal, or at a property auction, so where can you find them.
The reality is networking is often the best place to find the best opportunities, but that isn't always easy when you are first learning how to invest in real estate. So here are a couple of options on how to buy a house not on the market
- Do estate agents sell off-market properties? Not usually, but it is still worth checking with your local estate agents. They may know of a property that is available for a sale off-market for a cash buyer or they may know of a speciality property opportunity like a plot of land or development.
- Landlords and investors. It can be worth approaching landlords directly, especially large portfolio landlords and property investment companies. They may own properties they are interested in selling as they review their portfolio and assets yearly even though they are not being offered for sale as such.
- Investment Agents & Developers. Developers, including new build housing developers, may also sometimes have properties available for sale off-market at the end of development or at the very early stages of planning. These are often sold via an investment agent who market directly to their active investors not via portals.
- Word of mouth. You could tell family, friends, work colleagues and business contacts that you want to buy a property and ask them to spread the word for you to see if anyone is selling local. Be specific on what you are looking for. Tenanted properties for example where a landlord might be tired of being a buy-to-let investor and could consider selling with the tenant in situ.
- Advertising to buy off-market property. You can also advertise for ‘property wanted to buy’ to attract would-be off-market sellers. You may have seen newspaper adverts, signs on lampposts in your neighbourhood or social media posts with a similar style, trying to appeal to homeowners directly.
- A direct approach to owners. You can also consider making a direct approach to the owners of any properties you are interested in buying. The owner’s name and contact details for any property can be obtained by buying a copy of the title register from the HM Land Registry. Although the chances of success may be low, the work required is high and there is a cost to each title register, this can be a very good method for run-down empty houses.
Access our selection of exclusive, high-yielding, off-market property deals and a personal consultant to guide you through your options.
How to Buy a House Off-Market
Successfully purchasing these properties requires a methodical approach. On average, 1 in 3 property sales fall-through between an offer being accepted and exchange and completion. So, to improve your success, consider these key points.
Valuation Challenges
Without open market competition, determining true market value becomes crucial:
- Research recent sales prices of comparable properties
- Obtain professional valuations from a RICS surveyor
Due Diligence
The private nature of off-market deals makes thorough due diligence essential:
- Request comprehensive property information, including photos and floor plans
- Arrange detailed property viewings with a builder or maintenance team to spot any defects that might need snagging
- Conduct property searches and environmental reports.
Finance Considerations
While mortgages are available for off-market properties, prepare your funding carefully:
- Arrange financing before making offers
- Consider that lender valuations may differ from agreed prices
- Maintain ready access to funds for quick completion. This may require considering quick funding options like bridging finance.