Homeowners continue to reduce asking prices in effort to sell
10th February 2011
- Average asking price reduction climbs 16.3% over last 3 months to £18,475
- 37.4% of all properties on market today have been reduced at least once
- Average discount to original price now at 6.9%, up from 6.1% 3 months ago
New research out today from leading property website Zoopla.co.uk reveals that both the total number of ‘price-reduced’ properties on the market in the UK and the average amount by which they have been reduced have climbed over the past 3 months.
According to the research, 37.4% of all properties listed for sale today have experienced at least one price reduction since coming to the market (up from 36.4% in November) and the average discount now stands at £18,475 or 6.9% off the original asking price (up from £15,879 or 6.1% in November). Zoopla.co.uk offers a unique feature on its website allowing users to sort search results by those that have been most reduced in price.
The figures provide a clear indication of sellers becoming more realistic in terms of their expectations and will be a welcome sign to buyers as the gap narrows between asking prices and what buyers are willing to pay. This is most evident at the top end of the market, for properties listed for sale over £1m, where the average discount has climbed to 10% off the original asking price, up from 8% in November.
Birmingham tops the list of areas with the highest proportion of properties that have been reduced in price, with almost half (48.4%) of all properties on the market for sale today having been discounted at least once from the original asking price. Swindon (46.8%), Norwich (46.6%), Coventry (46.4%) and Bournemouth (44.1%) round out the top five areas which currently have the highest proportion of price reduced properties in the market. In terms of areas with the highest average discount to the original asking price, Bolton top the list with an average discount of 8%, followed closely by Newcastle (8%), Rotherham (7.9%), Liverpool (7.9%) and Maidstone (7.9%).
At the other end of the scale, Chorley (24.1%) leads the places with the lowest proportion of price reduced homes and Chelmsford (5.3%) comes out on top as the place with the lowest average discount to the original asking price in Britain.
Nicholas Leeming of Zoopla.co.uk, commented: "As a result of weaker than expected demand in the last half of last year, sellers have progressively reduced asking prices to more realistic levels in order to achieve sales. The traditional influx of new properties on the market at the start of the year has created even more intense competition amongst sellers. Even the resilient £1m+ market is showing signs that it is not immune from the general economic pressures as reductions have jumped at that end of the market. The unique tool on our website that lets users sort results by those most-reduced in price is proving a real hit amongst property bargain-hunters.”
Top 10 Areas with Most House Price Reductions
| Rank | Area | % of Homes on Market Reduced | Avg. Price Reduction (%) | Avg. Price Reduction (£) |
|---|---|---|---|---|
| 1 | Birmingham | 48.4% | -7.1% | -£11,547 |
| 2 | Swindon | 46.8% | -6.6% | -£13,330 |
| 3 | Norwich | 46.6% | -6.7% | -£15,198 |
| 4 | Coventry | 46.4% | -7.6% | -£11,825 |
| 5 | Bournemouth | 44.1% | -6.8% | -£17,425 |
| 6 | Doncaster | 44.0% | -7.0% | -£12,318 |
| 7 | Wolverhampton | 44.0% | -6.5% | -£9,366 |
| 8 | Chesterfield | 43.6% | -6.3% | -£8,927 |
| 9 | Derby | 42.7% | -6.9% | -£11,726 |
| 10 | Poole | 42.7% | -6.6% | -£26,498 |
Source: Zoopla.co.uk
Top 10 Areas with Highest Average Asking Price Reductions
| Rank | Location | Avg. Price Reduction (%) | Avg. Price Reduction (£) | % of Homes on Market Reduced |
|---|---|---|---|---|
| 1 | Bolton | -8.0% | -£11,287 | 38.6% |
| 2 | Newcastle | -8.0% | -£17,641 | 30.5% |
| 3 | Rotherham | -7.9% | -£10,457 | 39.8% |
| 4 | Liverpool | -7.9% | -£12,936 | 35.5% |
| 5 | Maidstone | -7.8% | -£18,116 | 42.0% |
| 6 | Ashford | -7.7% | -£18,104 | 39.2% |
| 7 | Warrington | -7.7% | -£15,086 | 38.5% |
| 8 | Glasgow | -7.6% | -£10,340 | 40.4% |
| 9 | Coventry | -7.5% | -£11,825 | 46.4% |
| 10 | Manchester | -7.5% | -£11,937 | 32.8% |
Source: Zoopla.co.uk
Top 10 Areas with Least House Price Reductions
| Rank | Location | % of Homes on Market Reduced | Avg. Price Reduction (%) | Avg. Price Reduction (£) |
|---|---|---|---|---|
| 1 | Chorley | 24.1% | -6.7% | -£15,028 |
| 2 | Newcastle | 30.5% | -8.0% | -£17,641 |
| 3 | York | 31.5% | -6.1% | -£21,422 |
| 4 | London | 31.8% | -6.6% | -£45,664 |
| 5 | Hull | 32.5% | -7.1% | -£8,230 |
| 6 | Manchester | 32.8% | -7.5% | -£11,937 |
| 7 | Stoke-on-Trent | 33.2% | -6.1% | -£8,261 |
| 8 | Wakefield | 33.4% | -6.4% | -£12,809 |
| 9 | Wigan | 33.6% | -6.7% | -£8,853 |
| 10 | Cardiff | 34.1% | -5.8% | -£16,674 |
Source: Zoopla.co.uk
Top 10 Areas with Lowest Average Asking Price Reductions
| Rank | Location | Avg. Price Reduction (%) | Avg. Price Reduction (£) | % of Homes on Market Reduced |
|---|---|---|---|---|
| 1 | Chelmsford | -5.3% | -£15,779 | 34.2% |
| 2 | Luton | -5.7% | -£11,238 | 40.7% |
| 3 | Cardiff | -5.8% | -£16,674 | 34.1% |
| 4 | York | -6.1% | -£21,422 | 31.5% |
| 5 | Stoke-on-Trent | -6.1% | -£8,261 | 33.2% |
| 6 | Northampton | -6.1% | -£11,377 | 41.7% |
| 7 | Leeds | -6.3% | -£12,074 | 35.6% |
| 8 | Chesterfield | -6.3% | -£8,927 | 43.6% |
| 9 | Wirral | -6.3% | -£11,600 | 42.1% |
| 10 | Brighton | -6.3% | -£21,716 | 38.1% |
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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