Property asking prices reduced to highest level in over a year

August 16, 2011 at 9:23 AM 5 comments

Bolton four bedroom family home reduced by 18.7%

Our latest analysis of current asking prices is showing that those selling continue to have to lower prices due to weak buyer demand. We’re also seeing the north-south divide continuing to widen – sellers in the north are being forced to reduce property asking prices by much more than their counterparts in the south. Northern towns and cities dominate the list of places with the highest average price reductions.

Sluggish economic growth has hit buyer confidence and tight-fisted lenders are currently making it impossible for swathes of would-be buyers to benefit from the price reductions.

The good news for those who can get mortgages, is that now is as good a time as there has been in over a year to bag a property bargain.

Key findings:

  • 2 in 5 properties on the market today have had price lowered at least once
  • Average price reduction by sellers is over £18,500, 7.1% off original price
  • North seeing more asking prices reduced and by higher % than in South

More current sellers have reduced the asking price of their home than at any time in the last year. Two in five (38.6%) of all properties currently for sale in Britain have had their asking prices reduced at least once since coming onto the market, up from 37% three months ago, and well ahead of the 32% one year ago.

Even properties over £1 million, where the market has been most resilient, have seen more asking price reductions. Of all £1 million+ properties on the market, 27% have had their price reduced at least once, up from 25% three months ago and significantly higher than the 22% one year ago.

Sellers in Bolton are suffering the most, having been forced to reduce the original asking price by 8.6% on average. Glasgow (8.2%) and Newcastle-upon-Tyne (8.2%) complete the top three, while other major northern cities like Liverpool are also in the top ten. Conversely, prices in the south-east have remained more immune to reductions where properties in Chelmsford (5.5%) have the lowest average discount and the list also includes other prominent south-east areas like London (6.3%) and Croydon (5.6%).

London has the lowest proportion of price-reduced homes in the UK (32.4%), serving to emphasise its detachment from the rest of the market. Meanwhile, in Stockport, nearly half (47.8%) of all properties for sale have been reduced in price since coming onto the market, closely followed by Huddersfield (46.3%) and Chesterfield (45.8%).

So, if you’re currently researching the market and looking to buy, make sure you use our unique feature allowing you to hunt for bargains by sorting properties for sale on Zoopla by those that have been most-reduced in price.

Here’s some more info on our most-reduced in price feature.

Zoopla.co.uk list of 50 key British cities/towns with property price reductions

Areas with Highest Level of Discounted Homes on Market

Rank Area % of Homes on Market Reduced Av. Price Reduction (%) Avg. Price Reduction (£)

1

Stockport

47.80%

-7.33%

-£15,737

2

Huddersfield

46.26%

-7.95%

-£12,910

3

Chesterfield

45.83%

-6.91%

-£10,657

4

Doncaster

45.02%

-7.91%

-£13,313

5

Wigan

45.01%

-7.56%

-£10,617

6

Norwich

44.68%

-6.59%

-£15,164

7

Derby

44.67%

-6.77%

-£11,643

8

Ipswich

44.66%

-6.98%

-£13,077

9

Bradford

44.02%

-7.47%

-£11,548

10

Lincoln

43.98%

-6.59%

-£12,836

Source: Zoopla.co.uk (August 2011)

Areas with Highest Average Asking Price Reductions

Rank Area % of Homes on Market Reduced Av. Price Reduction (%) Avg. Price Reduction (£)

1

Bolton

-8.59%

-£12,418

35.21%

2

Glasgow

-8.24%

-£11,255

39.11%

3

Newcastle

-8.18%

-£21,090

39.56%

4

Liverpool

-8.12%

-£13,285

39.45%

5

Rotherham

-8.11%

-£12,002

43.79%

6

Huddersfield

-7.95%

-£12,910

46.26%

7

Doncaster

-7.91%

-£13,313

45.02%

8

Ashford

-7.85%

-£19,381

41.27%

9

Maidstone

-7.84%

-£17,960

42.62%

10

Warrington

-7.75%

-£15,671

41.57%

Source: Zoopla.co.uk (August 2011)

Areas with Lowest Level of Discounted Homes on Market

Rank Area % of Homes on Market Reduced Av. Price Reduction (%) Avg. Price Reduction (£)

1

London

32.39%

-6.29%

-£37,159

2

Bolton

35.21%

-8.59%

-£12,418

3

York

35.71%

-5.92%

-£16,505

4

Peterborough

35.96%

-6.95%

-£12,359

5

Bristol

35.99%

-6.32%

-£14,570

6

Milton Keynes

36.04%

-7.33%

-£14,840

7

Hull

37.20%

-7.50%

-£8,642

8

Croydon

37.21%

-5.58%

-£13,496

9

Bedford

37.74%

-5.89%

-£15,151

10

Manchester

38.07%

-7.74%

-£12,543

Source: Zoopla.co.uk (August 2011)

Areas with Lowest Average Asking Price Reductions

Rank Area % of Homes on Market Reduced Av. Price Reduction (%) Avg. Price Reduction (£)

1

Chelmsford

-5.55%

-£17,754

41.60%

2

Croydon

-5.58%

-£13,496

37.21%

3

Swindon

-5.72%

-£11,547

40.36%

4

Bedford

-5.89%

-£15,151

37.74%

5

York

-5.92%

-£16,505

35.71%

6

Luton

-5.92%

-£11,894

40.81%

7

Northampton

-6.09%

-£11,547

41.91%

8

Cardiff

-6.13%

-£16,208

39.57%

9

Plymouth

-6.20%

-£11,068

42.99%

10

London

-6.29%

-£37,159

32.39%

Source: Zoopla.co.uk (August 2011)

As always, please feel free to share and use this information, all we ask is that you credit the source as Zoopla.co.uk and link to Zoopla.co.uk. Thank you.

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Entry filed under: House Prices. Tags: .

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5 Comments Add your own

  • 1. jason @ soundproofing  |  August 17, 2011 at 4:50 PM

    Would this be a comment on the economic considerations or sellers’ initial expectations? Probably a mixture of the two but I believe that reaism has crept in to the asking prices.

    Reply
  • 2. Real estate  |  August 22, 2011 at 6:26 AM

    Ya I agree with your post. It’s because of development and price hike. Also from last month market conditions are not good. So it’s normal. You have really provided us awesome information. Thanks for posting information.

    Reply
  • 3. Fleur  |  August 25, 2011 at 11:14 AM

    I still cannot believe how sellers are hanging on hoping they will get more money for their properties. Over the past three years the property market has been stagnant and yet some of these reductions don’t reflect it. At the top end of this, £15,737 is hardly reflective of what is going on in the UK property market.

    Reply
  • […] sector, buying has never been a better option for those able to secure a mortgage. Couple this with owners reducing prices further in order to achieve a sale before Christmas, there may well not have been a better time to […]

    Reply
  • 5. Contractor Mortgages  |  November 20, 2011 at 4:45 PM

    The issue heavily relates to lending and the fact that the majority of people cannot find either the right lenders or just don’t have the initlal financial outlay to get onto the property market! Very interesting figures and thankyou for displaying them in an easy to read manner.

    Reply

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