Property asking prices discounted to highest level in over a year
15th August 2011
- 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)
- Ends -
For further information, please contact PR Team on pr@zoopla.co.uk or +44 (0)20 3873 8770.
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