Asking and selling prices gap is narrowing - Mortgages - News - Moneyfacts


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

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.