Property asking prices continue to drop - Mortgages - News - Moneyfacts


Property asking prices continue to drop

Property asking prices continue to drop

Category: Mortgages

Updated: 14/02/2011
First Published: 14/02/2011

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 It is now over 6 months old so the content may be out of date.

A shortage of buyers in the property market has seen homesellers continue to reduce asking prices in an attempt to secure a sale.

The average discount now stands at £18,475, or 6.9% off the original asking price, compared with the reduction of £15,879, or 6.1%, reported by in November.

The research also revealed that well over a third (37.4%) of all properties on the market at present have had their price reduced at least once.

The website said the figures provide a clear indication of sellers becoming more realistic in terms of their expectations.

The narrowing gap between asking prices and what buyers are willing to pay is most evident at the top end of the market.

For properties listed for sale over £1 million, the average discount has climbed to 10% off the original asking price, up from 8% in November.

"As a result of weaker than expected demand in the last half of last year, sellers have progressively reduced asking prices to more realistic levels in order to achieve sales," said Nicholas Leeming, commercial director of the property website.

"The traditional influx of new properties on the market at the start of the year has created even more intense competition amongst sellers.

"Even the resilient £1million-plus market is showing signs that it is not immune from the general economic pressures as reductions have jumped at that end of the market."

Find the best mortgage rate - Compare best selling mortgages

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 Any products featured may be withdrawn by their provider or changed at any time.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

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.

Mortgage arrears on the rise

Mortgage arrears had been falling for several years, driven by low mortgage rates and improved affordability – but unfortunately, that’s come to an end, with cases of mortgage arrears having now risen for the second quarter in a row.