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Asking prices at most discounted level in over a year

10th May 2011

  • Sellers reduce prices by almost £19,000 on average, 7.1% off original price
  • Property asking price discounts now over £2,500 higher than one year ago
  • Over a third of all properties on market have been discounted at least once
  • Sellers in the North having to reduce prices far more than those in the South

The average price reduction being offered by property sellers in the UK is currently at its highest level in more than a year, according to the latest research from property website Zoopla.co.uk. For properties where the asking price has been discounted since first being listed, the average price reduction now stands at £18,970, nearly £500 higher than 3 months ago and over £2,500 higher than last summer as sellers try to attract more potential buyers.

Zoopla.co.uk, which offers a unique feature allowing users to sort properties for sale by those that have been most-reduced in price, reveals that 36.9% of all properties currently on the market in the UK have been discounted at least once, slightly less than the 37.4% in February. However, the average discount is now £494 higher than in February and £2,576 than last August, standing at its highest level in more than a year at 7.1% of the original asking price.

The latest figures will be welcome news to buyers as it shows that seller expectations are becoming more realistic. The story is quite different at the top end of the market for properties listed at £1m+ where the average price reduction is actually at one of its lowest levels of the past 12 months, a sign that demand at the upper end of the market is strengthening.

The North-South divide has never been clearer in the property market, with sellers in the North having to reduce asking prices more often and by much more than those in the South. Nine out of the top ten areas with the highest average asking price discount are in the North, led by Bolton where the average price reduction is 8.5%, followed closely by Rotherham (8.4%), Newcastle (8.2%), Huddersfield (8.2%) and Glasgow (8%).

And in Doncaster, almost half (46.4%) of all properties on the market today have been reduced in price at least once from the original asking price. Other areas of the country with the highest proportion of price-reduced properties include Wolverhampton (44.6%), Stockport (43.2%), Birmingham (42.8%) and Chelmsford (42.8%).

At the other end of the scale, properties in Croydon (5.7%) have the lowest average discount to the original asking price and Chorley (28.5%) has the lowest proportion of price-reduced homes in Britain.

Nicholas Leeming, business development director of Zoopla.co.uk, commented: "Weak demand as a result of the continued lack of availability of mortgage finance has caused sellers to knock ever more off their asking price over the last 12 months in order to make a sale. This is great news for buyers who are able to pick up more of a bargain in the housing market now than at any time in the last year.”

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 Avg. Price Reduction (%) Avg. Price Reduction (£)
1 Doncaster 46.36% -7.77% -£13,567
2 Wolverhampton 44.63% -7.05% -£10,354
3 Stockport 43.17% -7.23% -£15,606
4 Birmingham 42.80% -7.55% -£12,540
5 Chelmsford 42.76% -6.01% -£17,867
6 Swindon 42.47% -6.15% -£11,941
7 Bradford 42.35% -7.43% -£10,535
8 Chesterfield 42.09% -6.61% -£10,186
9 Bournemouth 41.94% -6.81% -£15,926
10 Derby 41.72% -6.85% -£12,079

Source: Zoopla.co.uk

Areas with Highest Average Asking Price Reductions

Rank Area Avg. Price Reduction (%) Avg. Price Reduction (£) % of Homes on Market Reduced
1 Bolton -8.53% -£12,398 36.96%
2 Rotherham -8.42% -£12,190 40.72%
3 Newcastle -8.24% -£20,242 34.81%
4 Huddersfield -8.16% -£12,581 39.32%
5 Glasgow -8.04% -£11,104 37.70%
6 Warrington -8.03% -£15,923 41.41%
7 Liverpool -7.85% -£12,853 36.69%
8 Doncaster -7.77% -£13,567 46.36%
9 Manchester -7.73% -£12,704 34.94%
10 Ashford -7.70% -£19,933 39.53%

Source: Zoopla.co.uk

Areas with Lowest Level of Discounted Homes on Market

Rank Area % of Homes on Market Reduced Avg. Price Reduction (%) Avg. Price Reduction (£)
1 Chorley 28.46% -6.56% -£13,884
2 London 29.66% -6.29% -£38,445
3 Peterborough 29.71% -6.57% -£11,481
4 York 31.04% -5.95% -£17,910
5 Hull 33.38% -7.36% -£8,304
6 Newcastle 34.81% -8.24% -£20,242
7 Manchester 34.94% -7.73% -£12,704
8 Brighton 35.08% -6.34% -£21,262
9 Stoke-on-Trent 35.65% -6.87% -£10,030
10 Sheffield 35.86% -6.98% -£12,722

Source: Zoopla.co.uk

Areas with Lowest Average Asking Price Reductions

Rank Area % of Homes on Market Reduced Avg. Price Reduction (%) Avg. Price Reduction (£)
1 Croydon -5.68% -£14,698 37.07%
2 Luton -5.87% -£11,734 38.44%
3 York -5.95% -£17,910 31.04%
4 Cardiff -5.97% -£16,662 37.28%
5 Chelmsford -6.01% -£17,867 42.76%
6 Swindon -6.15% -£11,941 42.47%
7 Southampton -6.20% -£15,297 38.63%
8 London -6.29% -£38,445 29.66%
9 Leeds -6.29% -£12,199 38.41%
10 Northampton -6.30% -£12,227 39.46%

Source: Zoopla.co.uk

- Ends -

For further information, please contact PR Team on pr@zoopla.co.uk or +44 (0)20 3873 8770.

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