The Zoopla research found that the average price reduction has also grown since the start of the year, with asking price reductions now at 6.7% on average off the initial asking price (equivalent to £24,429), up from 6.3% (£20,781) in February 2014. A total of £3.8bn has been knocked off the original asking prices of properties currently on the markets.
Preston has the highest proportion of price reductions in the country, with over four in ten (44%) properties having had their asking price lowered since first coming to the market. This is closely followed by the Yorkshire towns of Barnsley, Wakefield and Rotherham (all 43%).
However it is not just in the north of England where sellers are resetting their expectations. The largest discounts currently are to be found in affluent Mitcham in south-west London where sellers have dropped prices by 9.2% on average, equal to £55,606.
Sellers in Edinburgh are the most confident of achieving their original asking prices, with only 22% of properties for sale having their prices reduced, the lowest proportion across the country. This is followed by London where only 29% of homes have seen their asking prices lowered from the original price. However, this is almost double the proportion recorded in February 2014 when only 15% saw their asking prices reduced.
Lawrence Hall of Zoopla comments:
“The property market typically slows in December as buyers postpone their plans until the New Year and become pre-occupied with the festive season, but these figures suggest that sellers may be being forced to rest their expectations and become more realistic in order to secure a buyer. People are well attuned to a bargain at this time of year, so homebuyers may want to capitalise on the latest raft of reductions.
“The recent Stamp Duty reforms have injected a real feel-good factor into the property market that is likely to last into January when there will be a renewed surge in buyers looking for property. There would usually be an air of uncertainty in the lead up to an election, but the positivity created by the tax overhaul should ensure this isn’t as keenly felt as usual.”
