Property price discounts hit five-year low
Average property for sale now only discounted by 6.05%, lowest figure since 2010
Rotherham has most properties (43.6%) where asking price has been reduced
Largest price discounts found in Blackpool, with prices slashed 9.8% on average
Homebuyers are finding haggling over house prices increasingly difficult with the typical British property currently reduced by just 6.05% from its original asking price – the lowest level in five years – according to property website Zoopla.
But despite the lower discounts on offer, almost a third of properties currently on the market for sale (31%) have had their price reduced at least once since originally being listed. And that equates to over £2bn of reductions in total have been made from houses and flats currently on the market across Britain.
The top 10 areas with the highest percentage of properties with reduced asking prices are all in the north of England, with more than two-fifths of all properties listed in Rotherham (43.6%), Preston (43.2%) and Barnsley (42.3%) having been marked down by sellers.
In terms of the areas where the largest reductions are currently on offer, Blackpool (9.8%), Manchester (8.3%) and Bradford (7.9%) represent the best bets for bargain hunters, with London (7.4%) also featuring in the top 10. Typical discounts in the capital exceed £75,000.
Looking at London in more detail, the neighbouring boroughs of Merton (28.7%), Richmond-upon-Thames and Croydon (both 27.3%) have the highest proportion of reduced properties for sale, but those looking for the largest reductions will find them in Havering – a borough soon to benefit from Crossrail – where the typical property price discount is 10.45%.
At the top end of the national market, more than a fifth of properties valued over £1m have been reduced since originally coming on to the market, at an average discount of more than £185,000.
Lawrence Hall of Zoopla comments: “Buyers may be disheartened by the decrease in the typical discounts on offer but can take cheer from the fact that almost a third of houses are listed today below their original asking price. This means that despite ever-increasing house prices, there is still room for some good, old-fashioned negotiating. On the flip side, vendors can be pretty confident of achieving close to their initial asking price. Zoopla has a unique feature on its website that allows potential buyers to track original asking prices and subsequent reductions.”
Top 10 Areas With Highest Proportion of Asking Price Reductions
Rank | Area | % of Homes on Market Reduced | Average Price Reduction (%) | Average Price Reduction (£) |
|---|---|---|---|---|
1 | Rotherham | 43.6% | 7.4% | £11,193 |
2 | Preston | 43.2% | 6.8% | £14,235 |
3 | Barnsley | 42.3% | 7.4% | £10,331 |
4 | Wolverhampton | 41.2% | 7.0% | £11,236 |
5 | Blackpool | 38.9% | 9.8% | £14,017 |
6 | Chesterfield | 38.8% | 6.5% | £12,494 |
7 | Blackburn | 38.6% | 7.9% | £12,437 |
8 | Wakefield | 38.5% | 7.2% | £14,465 |
9 | Wirral | 37.8% | 6.4% | £15,643 |
10 | Huddersfield | 37.2% | 6.4% | £12,740 |
Source: Zoopla, May 2015
Top 10 Areas With Largest Asking Price Reductions
Rank | Area | Average Price Reduction | Average Price Reduction (£) | % of Homes on Market Reduced |
|---|---|---|---|---|
1 | Blackpool | 9.8% | £14,017 | 38.9% |
2 | Manchester | 8.3% | £15,437 | 31.2% |
3 | Bradford | 7.9% | £11,120 | 32.2% |
4 | Blackburn | 7.9% | £12,437 | 38.6% |
5 | Coventry | 7.6% | £17,317 | 31.0% |
6 | Liverpool | 7.5% | £12,990 | 34.8% |
7 | Pontefract | 7.5% | £12,254 | 36.9% |
8 | Rotherham | 7.4% | £11,193 | 43.6% |
9 | London | 7.4% | £75,154 | 23.0% |
10 | Barnsley | 7.4% | £10,331 | 42.3% |
Source: Zoopla, May 2015
Top 10 London Boroughs With Highest Proportion of Asking Price Reduction
Rank | Area | % of Homes on Market Reduced | Average Price Reduction (%) | Average Price Reduction (£) |
|---|---|---|---|---|
1 | Merton | 28.7% | 6.2% | £44,235 |
2 | Richmond upon Thames | 27.3% | 6.7% | £56,428 |
3 | Croydon | 27.3% | 8.0% | £38,337 |
4 | Kingston upon Thames | 26.7% | 5.3% | £44,699 |
5 | Hounslow | 26.6% | 8.9% | £69,139 |
6 | Bromley | 26.1% | 8.5% | £52,107 |
7 | Kensington & Chelsea | 25.8% | 7.6% | £135,207 |
8 | Hammersmith & Fulham | 25.8% | 8.4% | £93,086 |
9 | Haringey | 24.8% | 7.9% | £65,652 |
10 | Sutton | 24.2% | 7.9% | £34,912 |
Source: Zoopla, May 2015
- Ends -
About Zoopla
Hello. We're Zoopla. A property website and app.
We know you're not just looking for a place to live. You're looking for a home.
Yeah, we've got over a million properties for you to browse.
Tools that let you filter them in all kinds of clever ways.
And reliable house price estimates, so you can be sure you aren't paying over the odds.
But we know you're looking for more than that.
Because that first flat won't just be a 'great investment opportunity'.
It'll be the feeling of starting out on your own.
That extra bedroom won't just mean another £20K on the re-sale price, it'll mean having your sister over to stay.
And that bungalow won't just be a way to release some equity, it will be a chance to spend more time with the grandkids.
We know that searching for a home is about more than just checking its price, location and features (important as all those things are).
What really matters is how it makes you feel.
We know what a home is really worth.
So let us help you find yours.
Zoopla is part of Zoopla Limited which was founded in 2007.
Zoopla Limited, The Cooperage, 5 Copper Row, London, SE1 2LH Registered in England and Wales with Company No. 06074771 VAT Registration number: 191 2231 33 Data Protection number: Z9972266