The proportion of properties for sale across the UK that have seen their asking price reduced has fallen significantly as confidence builds in the property market.
Research by property website Zoopla reveals that only 31% of properties on the market today have had their asking prices cut since first being listed, down significantly from 40% in November 2011, 2 years ago.
The level of the reduction in asking prices has also fallen over this period. Sellers who were discounting their properties to try to achieve a sale in November 2011 were doing so at an average of 7.4% of the original price. The average reduction today stands at 6.4% of the original price.
Preston has the highest proportion of discounted properties currently with 43% of homes for sale having been reduced in price since coming onto the market. Yorkshire towns dominate the remainder of the top 5 places with the biggest proportion of reduced-price properties on the market with Rotherham at 42%, Wakefield & Barnsley at 41% and Doncaster at 40%.
London tops the list of places with the lowest proportion of price-reduced properties on the market at 20%, as a result of high demand and low stock in the capital. Bedford (25%) has the second lowest proportion of discounted properties for sale with Milton Keynes home to the third lowest proportion (28%).
The biggest average discounts on offer the original asking prices are to be found in Liverpool, with an average current asking price reduction of 8.6% (£14,149). The smallest discounts are being offered in Plymouth and Edinburgh, where sellers who have dropped prices have done so by only 5.5% on average.
Lawrence Hall of Zoopla comments:
“Confidence in the property market is at its highest level since the start of the economic downturn and this is reinforced with fewer sellers feeling the pressure to lower their expectations and drop prices.
“With the typical New Year rush of buyer demand likely to be made even more acute by the boost of the second phase of the government’s Help to Buy scheme, sellers expectations could rise further in the coming months. The only thing that could upset the trend is if there is a significant rise in level of stock coming to the market.”
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