Sellers adjust asking prices as market shows signs of weakness
3rd August 2010
- 32% of all properties currently on market have been reduced in price
- Average reduced property has dropped 6.1% from its original asking price
- £1.5 billion slashed from asking prices of properties on Zoopla.co.uk
New figures out today from leading property search website Zoopla.co.uk show that almost one third (32%) of properties on the market for sale in Britain today, have had their asking price reduced at least once since they were first listed on the market.
The research reveals an average price drop of 6.1% for all homes that have been discounted and a total of £1.5 billion that has been slashed off the asking prices of properties that are currently listed for sale on Zoopla.co.uk, which allows users to sort results on its website by the properties that have been most reduced in price.
According to the latest figures, at least one third of properties for sale have been discounted from their original asking price in 36 of the main 50 cities/towns studied by Zoopla.co.uk (full list: www.zoopla.co.uk/pricereduction). Barnsley tops the list of locations that have seen the most price reductions with 44% of all properties currently listed for sale having been discounted at some point. At the other end of the scale, only 24% of current sellers in Glasgow have knocked anything off their original listing price.
The highest average price reductions have been in Rotherham, Manchester and Barnsley, where average asking prices have been discounted by 7.1%. In Rotherham that represents a £9,442 drop in asking prices whilst average prices have been reduced by £11,376 in Manchester and £8,978 in Barnsley. By contrast, average price reductions in the south have been smaller, with average asking prices in Chelmsford and Brighton both having been reduced by 5.1%, or £18,814 and £19,928 respectively.
At the top end of the market, for properties with current asking prices of £1+ million, sellers are not feeling the pinch to quite the same degree with only 22% of properties having been reduced in price since first being put on the market. However, for those properties that have been reduced in this price bracket, the discount is much higher than the average at 9.6%.
Nicholas Leeming, Commercial Director of Zoopla.co.uk, said, "Sellers across the country are certainly feeling the heat this summer as the recovery has slowed and the market direction is uncertain. More and more sellers are cautiously reducing asking prices in a bid to attract buyers and lock in the house price gains of the past 16 months. But, Britain is not one uniform housing market and smaller reductions are clearly evident in some locations in the south of England where the outlook for employment and economic growth is brighter. In a buyers' market, astute house hunters will be on the lookout for properties with the biggest reductions in the hope of picking up a bargain."
Top 10 Locations for Price Reductions
| Rank | Location | % of Listings with Price Reductions | Avg. Price Reduction (%) | Avg. Price Reduction (£) |
|---|---|---|---|---|
| 1 | Barnsley | 44.7% | -7.1% | -£8,978 |
| 2 | Bristol | 42.9% | -6.0% | -£13,162 |
| 3 | Rotherham | 40.6% | -7.1% | -£9,442 |
| 4 | Swindon | 40.3% | -5.2% | -£10,207 |
| 5 | Stockport | 39.7% | -6.3% | -£12,796 |
| 6 | Norwich | 38.9% | -5.7% | -£12,328 |
| 7 | Lincoln | 38.8% | -6.7% | -£13,232 |
| 8 | Wakefield | 38.8% | -6.0% | -£11,966 |
| 9 | Luton | 38.6% | -6.1% | -£10,962 |
| 10 | Northampton | 38.4% | -5.6% | -£11,435 |
Source: Zoopla.co.uk (as at Aug 1st 2010)
Bottom 10 Locations for Price Reductions
| Rank | Location | % of Listings with Price Reductions | Avg. Price Reduction (%) | Avg. Price Reduction (£) |
|---|---|---|---|---|
| 1 | Glasgow | 24.0% | -6.9% | -£10,084 |
| 2 | Huddersfield | 26.8% | -6.4% | -£11,614 |
| 3 | Chesterfield | 27.0% | -5.6% | -£8,146 |
| 4 | Liverpool | 27.7% | -6.7% | -£11,179 |
| 5 | Newcastle | 27.9% | -6.7% | -£12,117 |
| 6 | London | 28.2% | -5.9% | -£37,421 |
| 7 | Wrexham | 30.0% | -6.1% | -£10,281 |
| 8 | Manchester | 30.3% | -7.1% | -£11,376 |
| 9 | Bradford | 31.6% | -6.1% | -£9,090 |
| 10 | Nottingham | 31.8% | -6.0% | -£10,841 |
Source: Zoopla.co.uk (as at Aug 1st 2010)
Price reductions in 50 key British cities/towns: www.zoopla.co.uk/pricereduction
- Ends -
For further information, please contact PR Team on pr@zoopla.co.uk or +44 (0)20 3873 8770.
Notes to editors
Methodology
Price reductions based on all properties listed for sale as at 1st August 2010. Includes all price reductions since the property was first listed for sale on Zoopla.co.uk. The Top 10/Bottom 10 are taken from a list of 50 key cities/towns across Britain based on the number of properties listed.
About Zoopla.co.uk
Zoopla.co.uk is the UK's most comprehensive property website, focused on empowering consumers with the resources they need to make better-informed property decisions. We help our users make sense of the residential property market by combining property listings with market value data, local information and community tools.
Zoopla.co.uk was founded on the principles of transparency and efficiency and everything we do aims to make the market more effective for both property consumers and professionals alike. By combining free, instant value estimates for every UK home with sold prices, local market information and hundreds of thousands of properties available for sale and to rent, Zoopla.co.uk has rapidly become the ultimate destination for property consumers to search for property and do their market research. Our unique features allow users to gain an insight into the market and discover information they won't find anywhere else. And, as a result, we have become one of the most valued sources of both applicant and vendor leads for UK estate agents.
Launched in 2008, we are the fastest growing property website in the UK, now attracting over 12 million visits per month and are proud to have been awarded numerous accolades including being listed in the Top 10 UK Tech Companies (Guardian) and the Top 10 Most Innovative UK Companies (Smarta 100) as well as being voted the UK's Best Property Portal (Web User, Daily Mail Awards, Website of the Year).
Zoopla Limited is a privately held company with a highly experienced and proven management team, led by Founder and CEO, Alex Chesterman, and backed by well-respected angel investors and leading venture capital firms Atlas Venture (atlasventure.com) and Octopus Ventures (octopusventures.com).