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Asking and selling prices gap is narrowing

Asking and selling prices gap is narrowing

Category: Mortgages

Updated: 15/06/2009
First Published: 15/06/2009

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The gap between asking and selling prices is beginning to narrow, according to the Royal Institution of Chartered Surveyors (RICS).

Almost six in ten chartered surveyors say that the difference between what homeowners ask for their property and what they accept appears to be decreasing.

When the same survey was conducted in August last year, the results showed a widening gap.

While conditions seem to be improving, properties across the UK are selling at 11 per cent below their asking price on average, with sellers in some regions accepting bids that are as much as 26 per cent below the asking price.

Homeowners looking to sell their property in the North have been worst affected by the decline of the property market. On average, sellers in the region are achieving a deal worth 74 per cent of their property's asking price.

Sixty-three per cent of surveyors in the North reported a lessening of the gap between asking and selling prices.

Agreed prices in the North West are currently worth 84 per cent of the asking price, although this is a slight improvement from last year, when the average was 82 per cent, is evident.

Homeowners in London and Scotland have the best chance of achieving a price equal or close to the asking price. Vendors in the capital are achieving deals equivalent to 93 per cent of a property's value on average, while Scottish buyers are agreeing to pay 97 per cent of a home's asking price to secure a deal.

"The improvement in sentiment that has been captured in recent Housing Market Surveys is reflected in a narrowing in the gap between asking and selling prices," commented Brigid O'Leary, RICS senior economist.

"This is particularly interesting given that recent reports from Rightmove suggest that asking prices have been relatively stable since February."

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