Property price reductions at lowest level for almost three years
16th May 2013
- Proportion of discounted properties falls from 34.3% to 30.7% over past year
- Average property price reduction (6.1%) at lowest level since November 2010
- North still suffering from over-pricing and high level of discounted properties
- Sellers feeling less pressure to reduce prices as confidence in market grows
In a further sign of strength in the housing market, research out today from property website Zoopla.co.uk reveals that the number of properties currently for sale that have been reduced in price since first coming onto the market has fallen to its lowest level in almost three years.
The proportion of properties for sale that have had their asking price dropped at least once now stands at 30.7%, down from 34.3% twelve months ago. This marks the third successive quarter where the proportion of reduced price properties has fallen and is the latest sign that confidence is returning to the housing market.
The amount by which asking prices are being discounted on average has also fallen to 6.1%, the lowest proportion since November 2010. But the north-south property divide remains with the top ten areas with both the highest proportion of discounted properties and the biggest asking price reductions all in the north.
Yorkshire has been particularly hit by property price reductions. Six of the ten areas with the biggest proportion of discounted properties are in Yorkshire, including the top three with 42% of properties in Rotherham, 41% in Doncaster and 40% in Wakefield having been reduced in price coming to the market. And Barnsley has the highest average discount in the country to the original asking price at 8.6% followed by Liverpool (8.5%) and Blackpool (8.3%.
London has the lowest proportion of price reductions in the UK with only 24% of properties currently for sale in the capital having had their asking price adjusted downwards. Edinburgh (25%) and Bournemouth (26%) complete the top three. And Edinburgh has the lowest average asking price discount in the UK currently standing at just 4.9% off the original asking price with Swindon (5.3%) and Bedford (5.4%) coming in second and third respectively.
Lawrence Hall of Zoopla.co.uk comments:: “There is a generally positive sentiment in the property market at the moment that reflects a genuine belief that the worst of the economic crisis is behind us and that the housing market is at the early stages of a recovery. These figures show that fewer and fewer sellers are feeling the same level of pressure to reduce prices as over the past couple of years which bodes well for a recovery in house pricing.”
Top 5 Areas with Highest Proportion of Asking Price Reductions
| Rank | Area | % of Homes on the Market Reduced | Avg. Price Reduction (%) |
|---|---|---|---|
| 1 | Rotherham | 41.9% | 7.79% |
| 2 | Doncaster | 40.7% | 8.33% |
| 3 | Wakefield | 40.2% | 7.52% |
| 4 | Barnsley | 38.4% | 8.57% |
| 5 | Sunderland | 38.2% | 8.33% |
Source: Zoopla.co.uk (May 2013)
Top 5 Areas with Biggest Asking Price Reductions
| Rank | Area | Avg. Price Reduction (%) | % of Homes on Market Reduced |
|---|---|---|---|
| 1 | Barnsley | 8.57% | 38.4% |
| 2 | Liverpool | 8.51% | 35.1% |
| 3 | Blackpool | 8.34% | 28.8% |
| 4 | Doncaster | 8.33% | 40.7% |
| 5 | Sunderland | 8.33% | 38.2% |
Source: Zoopla.co.uk (May 2013)
Top 5 Areas with Lowest Proportion of Asking Price Reductions
| Rank | Area | % of Homes on Market Reduced | Avg. Price Reduction (%) |
|---|---|---|---|
| 1 | London | 23.5% | 6.7% |
| 2 | Edinburgh | 25.1% | 4.91% |
| 3 | Bournemouth | 26.7% | 6.44% |
| 4 | Swansea | 27.4% | 6.43% |
| 5 | Gloucester | 27.6% | 6.39% |
Source: Zoopla.co.uk (May 2013)
Top 5 Areas with Smallest Asking Price Reductions
| Rank | Area | Avg. Price Reduction (%) | % of Homes on Market Reduced |
|---|---|---|---|
| 1 | Edinburgh | 4.91% | 25.1% |
| 2 | Swindon | 5.27% | 31.6% |
| 3 | Bedford | 5.36% | 29.2% |
| 4 | Milton Keynes | 5.47% | 30.3% |
| 5 | Derby | 5.69% | 33.2% |
Source: Zoopla.co.uk (May 2013)
- 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