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Sellers making record reductions to asking prices

Sellers making record reductions to asking prices

Category: Mortgages

Updated: 22/11/2011
First Published: 22/11/2011

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 It is now over 6 months old so the content may be out of date.

House sellers are increasingly slashing their asking prices as they battle to secure a buyer in a struggling housing market.

According to new research from Zoopla, 40% of UK properties currently up for sale have been reduced in price in order to try to seal a deal.

At the same time, the average discount being offered off the original asking price has reached a new high at over £19,500.

Indeed, the amount by which sellers have reduced their price expectations has risen significantly over the past 12 months, with the average property now being discounted by £3,500 more than this time last year.

Last November, amongst those homes that had been reduced in price, the average price reduction was 6.1%.

At present, that figure stands at 7.4% as sellers reassess what they believe to be a realistic price and become more desperate to close a sale by the end of the year.

The biggest discounts are on offer in Glasgow, with the average reduction in the city currently standing at 9.1% (£12,881), followed closely by Newcastle and Bolton.

Meanwhile, Sunderland tops the list of towns with the highest proportion of properties on the market that have been discounted at least once (53.6%).

Although London remains the most resilient area of the UK, pressure appears to be building with nearly a third (32.6%) of properties for sale in the capital having been reduced in price.

"With the current economic uncertainty and difficulty buyers face in finding funding, it is no wonder that sellers are having to reduce prices in order to encourage sales," said Nicholas Leeming, business development director of Zoopla.co.uk.

"And with the latest economic forecasts for 2012 looking decidedly gloomy, sellers may have to reduce their expectations further if they are serious about making a move."

At the same time, the latest data from HM Revenue & Customs has revealed a slowdown in the number of house sales in the UK compared to last year.

Around 76,000 homes were sold in October, 1,000 more than in September, but 3,000 fewer than in October 2010.

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.

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