Growth in Property Price Reductions

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According to new research from Zoopla.co.uk the average property seller has had to reduce the asking price of their home by nearly £20,000 to secure a sale. Over 40 per cent of all UK properties currently on the market for sale have experienced at least one price reduction, as sellers try to entice buyers.

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 per cent. Today that figure stands at 7.4 per cent which represents a discount of nearly £3 billion off the initial asking prices as sellers become both more realistic and more desperate to close a sale by the end of the year.

Glasgow tops the list of towns where the biggest discounts are on offer with the average reduction in the city currently standing at 9.1 per cent (£12,881). Newcastle and Bolton follow closely with asking prices currently discounted by an average of 8.9 per cent and 8.8 per cent respectively. All but one of the top ten areas with the highest price reductions are in the North, where the number of sellers reducing their asking price is also the highest. Sunderland tops the list of towns with the highest proportion of properties on the market that have been discounted at least once with more than half (53.6 per cent) of sellers there having to reset their expectations downwards at least once.

Whilst the London property market continues to demonstrate its resilience with the lowest proportion of price-reduced homes in the UK , nearly a third (32.6 per cent) of properties for sale in the capital have had to be reduced in price indicating that London is not entirely immune from the conditions being felt around the rest of the country.

Business development director of Zoopla.co.uk, Mr Nicholas Leeming said, “With the current economic uncertainty and difficulty buyer’s face in finding funding, it is no wonder that sellers are having to reduce prices in order to encourage sales. And with the latest economic forecasts looking decidedly gloomy, sellers may have to reduce their expectations further if they are serious about making a move.”