Zoopla have reported that over the past 6 months, the number of properties being reduced, and the figure they are being reduced by, has continued to increase. At this point we have seen 35% of sellers reduce their asking price by an average of £25,562.
This figure may have been impacted by the outcome of Brexit, as before the EU referendum in 2016, the reduction average was 6% lower, at 29%. This suggests Brexit uncertainty is causing many to reconsider their sale.
The biggest discounts are in the London property market, Zoopla have put the average mark-down in South London’s Richmond and Kingston upon Thames at £84,244. London have seen the largest house price cuts, Zoopla has recorded a reduction on 39% of all listings. Whereas homes in the North and Scotland have proved slightly more tolerant to the cuts. In Manchester and Salford, only around 25% of homes have been reduced in price, followed by 22% in Glasgow, and Edinburgh are seeming to be more resistant, with only a 16% average reduction. Across the country, the average asking price slash currently stands at £25,562.
The Royal Institute of Chartered Surveyors commented earlier this month that the UK housing market “remained subdued due to a lack of demand, with little hope of it gaining momentum in the next few months.”, information found from their monthly residential market survey.
Zoopla correspondent Lawrence Hall has highlighted that this is great news for first time buyers hoping to get onto the property ladder. “A slight rise in levels of discounting is to be expected at this time of year when house-hunters are likely to be delaying their property search until activity picks up in January,” states Hall. “Those on the look-out for a bargain should consider looking in Camberley or Kingston upon Thames in the south, or areas of the north-east – home to some of Britain’s biggest discounts.”
Speculation over house prices in 2018 seems to mainly be that house prices should continue to decrease. This will be due to falling wages, and weak confidence in buyers as our future separated from the EU still remains unconfirmed.