Property asking prices discounted to highest level in over a year
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, according to property website Zoopla.co.uk. 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.
Zoopla.co.uk, which offers a unique feature allowing users to hunt for bargains by sorting properties for sale on its website by those that have been most-reduced in price, reveals that sellers have been forced to reduce prices by £18,597 (7.13%) on average in an effort to attract buyers. The average price reduction is now £2,200 more than one year ago when the average discount from the original asking price was 6.1%.
And the north-south divide continues to widen in the property market. Sellers in the north are being forced to reduce 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.
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%).
Nicholas Leeming, business development director of Zoopla.co.uk, commented: “Vendors continue to have to lower prices due to weak buyer demand. 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. For those who can get mortgages, now is as good a time as there has been in over a year to bag a property bargain.”
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 | 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 | Avg. 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 | Avg. 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 | Avg. 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)
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