Property price discounts hit five-year low

Landlord Expert
By Landlord Expert June 23, 2015 13:15
  • Average property for sale now only discounted by 6.05%, lowest figure since 2010
  • Rotherham has most properties (43.6%) where asking price has been reduced
  • Largest price discounts found in Blackpool, with prices slashed 9.8% on average

Homebuyers are finding haggling over house prices increasingly difficult with the typical British property currently reduced by just 6.05% from its original asking rice – the lowest level in five years – according to property website Zoopla.

But despite the lower discounts on offer, almost a third of properties currently on the market for sale (31%) have had their price reduced at least once since originally being listed. And that equates to over £2bn of reductions in total have been made from houses and flats currently on the market across Britain.

The top 10 areas with the highest percentage of properties with reduced asking prices are all in the north of England, with more than two-fifths of all properties listed in Rotherham (43.6%), Preston (43.2%) and Barnsley (42.3%) having been marked down by sellers.

In terms of the areas where the largest reductions are currently on offer, Blackpool (9.8%), Manchester (8.3%) and Bradford (7.9%) represent the best bets for bargain hunters, with London (7.4%) also featuring in the top 10. Typical discounts in the capital exceed £75,000.

Looking at London in more detail, the neighbouring boroughs of Merton (28.7%), Richmond-upon-Thames and Croydon (both 27.3%) have the highest proportion of reduced properties for sale, but those looking for the largest reductions will find them in Havering – a borough soon to benefit from Crossrail – where the typical property price discount is 10.45%.

At the top end of the national market, more than a fifth of properties valued over £1m have been reduced since originally coming on to the market, at an average discount of more than £185,000.

Lawrence Hall of Zoopla comments: “Buyers may be disheartened by the decrease in the typical discounts on offer but can take cheer from the fact that almost a third of houses are listed today below their original asking price. This means that despite ever-increasing house prices, there is still room for some good, old-fashioned negotiating. On the flip side, vendors can be pretty confident of achieving close to their initial asking price. Zoopla has a unique feature on its website that allows potential buyers to track original asking prices and subsequent reductions.”

Top 10 Areas With Highest Proportion of Asking Price Reductions

Rank

Area

% of Homes on Market Reduced

Average Price Reduction (%)

Average Price Reduction (£)

1

Rotherham

43.6%

7.4%

£11,193

2

Preston

43.2%

6.8%

£14,235

3

Barnsley

42.3%

7.4%

£10,331

4

Wolverhampton

41.2%

7.0%

£11,236

5

Blackpool

38.9%

9.8%

£14,017

6

Chesterfield

38.8%

6.5%

£12,494

7

Blackburn

38.6%

7.9%

£12,437

8

Wakefield

38.5%

7.2%

£14,465

9

Wirral

37.8%

6.4%

£15,643

10

Huddersfield

37.2%

6.4%

£12,740

Source: Zoopla, May 2015

Top 10 Areas With Largest Asking Price Reductions

Rank

Area

Average Price Reduction

Average Price Reduction (£)

% of Homes on Market Reduced

1

Blackpool

9.8%

£14,017

38.9%

2

Manchester

8.3%

£15,437

31.2%

3

Bradford

7.9%

£11,120

32.2%

4

Blackburn

7.9%

£12,437

38.6%

5

Coventry

7.6%

£17,317

31.0%

6

Liverpool

7.5%

£12,990

34.8%

7

Pontefract

7.5%

£12,254

36.9%

8

Rotherham

7.4%

£11,193

43.6%

9

London

7.4%

£75,154

23.0%

10

Barnsley

7.4%

£10,331

42.3%

Source: Zoopla, May 2015

Top 10 London Boroughs With Highest Proportion of Asking Price Reduction

Rank

Area

% of Homes on Market Reduced

Average Price Reduction (%)

Average Price Reduction (£)

1

Merton

28.7%

6.2%

£44,235

2

Richmond upon Thames

27.3%

6.7%

£56,428

3

Croydon

27.3%

8.0%

£38,337

4

Kingston upon Thames

26.7%

5.3%

£44,699

5

Hounslow

26.6%

8.9%

£69,139

6

Bromley

26.1%

8.5%

£52,107

7

Kensington & Chelsea

25.8%

7.6%

£135,207

8

Hammersmith & Fulham

25.8%

8.4%

£93,086

9

Haringey

24.8%

7.9%

£65,652

10

Sutton

24.2%

7.9%

£34,912

Source: Zoopla, May 2015

Landlord Expert
By Landlord Expert June 23, 2015 13:15

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