Over a third (36.7%) of UK properties currently for sale have been reduced in price at least once since first coming on to the market.
The average discount off the original asking price being offered by sellers across the UK on these homes now stands at £19,580 (7.5%) according to property search website Zoopla.
The average discount on price-reduced properties on offer today is over £1,000 more than this time last year when it stood at £18,475 (7%).
Home owners have slashed huge sums from their original asking prices in an attempt to attract buyers. The total amount reduced from the asking prices of all properties currently for sale across the country stands at £2.5bn, Zoopla estimates.
In some areas, almost half of all properties on the market have had their prices chopped. For example, in Stockport, 48.74% have had price reductions averaging £17,384.
In Scunthorpe, 43.19% of homes have had their prices cut by an average of 9.12%, lopping £13,207 off the asking price.
Sellers in Blackpool are also making big concessions, knocking 9% off their original asking prices on average, whilst Maidstone rounds out the top-three areas with the highest average reductions at 8.5% (£19,668).
Even in London, 30% of homes for sale have had price cuts of 6.42%.
Stockport has the highest proportion of discounted properties for sale with nearly half (49%) of sellers having cut their asking prices at least once. Other areas where a big proportion of sellers have felt the need to drop prices include Chesterfield (45%) and Rotherham (44%).
Zoopla director Nicholas Leeming said: “The current average discount of £19,580 is a new high, indicating that sellers have come to terms with the market realities.”
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Comments
It is a market.
To all HPC'ers, please make a mental note, you cannot wish the market down or pull it downward by making futile stupid comments here.
You can get the market to reduce by offering substantially less for a property than the owner would like to sell it for.
If enough sales go through at substantially less money than is the current norm the effect will be that the market will have reduced as you wish it to.
To effect this you need:
The funds to do it.
The time to shop for what you want
The agreement of an pwner to sell to you.
Good luck with it.
Now get on with it. Nelow, the HPCer mantra
When all is said and done, more is said than done.
Dave u r just a dope ? Crawl back under your stone me duck you pillock, Xx how pityful
The number of properties being bought with buy-to-let mortgages increased by around 84,000 in 2011, modestly helping to increase the supply of private rented housing in the UK, according to latest data from the Council of Mortgage Lenders.
and still a massive shortage, plenty of rent out there to fund them, in 15 years most of these folk, if they have bought well, will own an asset free of loan paid for by someone else, nice free pension.
f not they will get repo'd and someone else will make dosh from it.
All HPC followers really wish that they had been able to buy a home in the late 90's, sold out at the peak of the market in 2007, made a heap of cash, jumped into rented for a year or so, took advantage of the market when no-one was moving, and bought at a discount, perhaps then having little or no mortgage.
Can I be bothered to explain the differnces between Britain and Japan to dave?...................nope, dont think I can.
prices are going to fall...possibly 40-60%
buy to let are going to find themselves without tenants as ftb will start to buy rather than rent.
anyone who thinks the current situation is sustainable is delusional
in japan prices are still 40% less than 1991 and property investment is a bad word
beware
Steveo, spot on, it really is as simple as that.
Rapid house price inflation without an equivalent wage inflation has made us all poorer.
Those that rail against the notion of a price correction should think long and hard about the societal implications of this.
Oh Dear I bought something and its not worth what I paid. So lets apply the saqme hatred of EAs and put it on Stockbrokers as the price of stocks has fallen. But you wouldn't because its a stupid premise. It is a consumer driven market and if it wasn't worth it why did you buy it? Why not accept that life has thrown a curve ball and it didn't pan out rather than blaming others for your own errors? Different areas different markets so some are actually as they were pre 2007 crash. Different areas same vendors who think that their property is worth more than a larger/better ect one because...its theirs. EA who is clever will know that they are unlikely to get any sale made so ups fee so idiot EA can take on instead. Not parasites just business people.
Adam Smith: '... the UK benefit system upon which so many people rely is about to completely dry up...'
Do you ever stop to read what your write?
The world is a changed place and the old rules don't apply anymore.
The traditional chain market is no longer the main driver of the Market.
Property prices have found a level which is higher than most people think it should be but while there are buyers prices aren't going to fall.
There will be a house price crash but it is going to be centred on a few square miles of central London.
The new Bank crisis is going to be all the over extended pyramid portfolios in central London. There is a big game of Jenga going on and it won't be long before the tower starts to topple. Watch and remember you read it first on EAT
1999-2009 - 13% Average Salary Increase
1999-2009 - 38% Total Inflation
and
1999-2009 - 123% Average House Price Increase
The situation is simple economics. Two things happen:
1) Rapid inflation brings average salaries in line with prices (historic norm).
2) Asset prices crash to bring prices in line with average salaries (historic norm).
@Rick Deckard
That easy eh?
That’s assuming the agent is
1, checking internet traffic/click through rates/interest levels
2, Altering adverts/photos to keep listing fresh
3, Taken care in how the listing is presented in the first place.
4, giving accurate feedback after every viewing
5, Not a complete muppet.
My point is, don’t drop your asking price based on the advice of your agent who is doing sod all to get it sold in the first place.
House prices have a long way to fall yet, in my opinion. Prices depend on people having money or being able to get a mortgage, not on how pretty a seller thinks their house is. Mortgages are difficult to get, few people have savings, but if businesses are going bust because banks won't support them then people lose their jobs. This must be the biggest factor in whether a seller has to reduce their asking price. I think prices are still to fall by about 40 to 50%. I don't have a crystal ball, but then neither does an estate agent. Time will tell who is right.
Selling Houses Made Easy For Vendors In ANY Market
1) Instruct an agent
2) If no offers received on your house within the timescales you have wished - then reduce the price
3) If you recieve a full asking price offer that same afternoon - then its probably a tad under priced
4) If its still on the market a year down the line - then its probably a bit toppy on the price
What do they teach you people at school these days?
Property Owners Prayer.
Dear Lord
Please preserve the price of our houses.
Do not lead us into dispair.
Thine is the Kingdom, the power and the glory to do great and wondrous things.
If you help me oh Lord to sell my house at the full asking price or more,
I promise I will obey you and support you for ever more. Amen
(Found in the last remaining church after all the others had finally closed down).
It is not feasible to forecast patterns of sale and demand in the year ahead. We are in unprecedented times, the UK benefit system upon which so many people rely is about to completely dry up, and house prices are artificially high through the reckless lending of banks over a relatively short period of time. Bankers bonuses are becoming a thing of the past as are outstandingly high house prices as all the current reports including those of Estate Agent Today suggest.
Trev......tell them you won't pay and want to come away from zoopla.See how they react to that.
Won't be long before 2 companies are shafting us every March.
My god a sensible debate on prices, could that be the lack of posts by the normal ones who feel they are brilliant but make a nonsence of any blog, Rant, Brit1234 sping to mind.
When you say "added value" do you mean like they do on the telly?
Do you realise those shows are re-runs from the early noughties?
Seriously though, it's pretty rich for the property industry to spend the best part of 15 years spouting this rubbish and then turn around and say "you didn't believe us did you, pillock?".
Stiff upper chin: Suggest you do just that.
(Try selling it first before putting a match to it, though...)
How does your comment tie in with the fact that Zoopla are over egging the market in Scunthorpe giving vendors there the impression that the agents are trying to stiff them like Upper Chin says.
The zoopla valuation methodology is full of holes. Where is Peter Hendry? this is a subject he knows all about.
HPCers, Peter Hendry and a resentfull vendor in one thread, that should be good for a laugh.
Has anyone been approached about DPG price increases? They want to up ours by 50%
Sorry, am i missing something have you posted on here just to get a reaction? anyhow this is amusing me.
You paid 350k, you've 'added value' - meaning you've spent money on it, and now its valued at 250 to 280, but prices have not fallen in your area? The figures, sir/madam may suggest you are wrong......and ignorant.
Property prices have not fallen here, they are stagnant, maybe moved sideways a bit. You should read the papers.
£250k lowest. £280k highest. I didn't pay too much. I got a bargain and have since added even more value.
Lazy parasites looking to make a quick buck at my expense.
stiff upper chin, you are very very ignorant , calling estate agents 'parasites' is distasteful and 99% inaccurate, have you had your cottage valued by a few agents at £250? if so have you considered that you may have ignorantly paid a little too much for it? and if you read the papers you may see that property prices have fallen. Pillock
Good point EA no way. Why take anybodys word for it. Simply download the Property Bee add on and you can watch the whole sordid dance. It goes alittle something like this:
On the market, off the market, price down, price up, price down, price down, description messed around with, price down, off the market, back on, price really down this time, new agent....................................
Propert Bee
Property Bee
Just checked my area on Rightmove with Property Bee add on.
155 listings. 102 have price reductions.
Go Property Bee.
The market is stagnant. Any agent selling tons at asking price is either full of cr@p or MASSIVELY under-valuing your home. Do not let them mug you.
I bought my detached cottage 5 years ago for £350k. Now the parasites think I should give it away for £250k just so they get some quick commission. I will not do it. I will stay here. Maybe sell privately. Maybe burn it down. Screw you.
Ha Ha, just noticed Sibley is here convincing EAs that prices aren't falling. I believe that's called irony!!
@Fun Boy Agent
Did you forget to put on your tin foil helmet this morning?
> Fun boy agent
Just checking changes in RM for last 24h - Loughton/Essex/London zone 6.
7 listings. 5 of them are discounts ... 70% ...
Hmm .....
Sorry James T,
Full asking price achieved on 5 of mine so far this year, and it is early days in the year.
Potential Vendors, please pay no attention to the people who have a vested interest in a falling market.
Speak to your local agent for clear advice
@ Zoopla figures are flawed on 2012-02-08 07:49:54
"If Zoopla are puming this stuff out to us imagine the effect on the genuine applicants and vendors who are being mailed this stuff."
Errr...they may be more willing to drop their price and thus sell???
@ fun boy agent,
house prices are coming down everywhere,
also your selling price will differ, not may differ.
What a load of tosh. Maidstone house prices are sky high. It's only the dumps that are going cheap. Totally false and misleading.
Getting it in perspective.
If you are a vendor or potential vendor reading comments on this site, please do not worry.
There are perhaps 10 or so of these irritating HPC’ers who have latched on to this informative Estate Agency website and forum to spout unmitigated dribble regarding their personal desires to see UK residential property prices reduce. It seems they believe they can influence the whole of the UK market with a sustained campaign on this website. Anyone related to the industry in a professional capacity will absolutely understand how futile their campaign is and the reasons why.
If you need advice on your local market please call your local Estate Agent who will be only too happy to give you an unbiased balanced view of your likely selling price.
Your selling price may differ somewhat to your asking price. Your agent will discuss this with you also.
@Property Hawk
So if the seller choses the marketing price, what is the EA's job these days? Just uploading details onto websites? Money for old rope.
On the subject of fees, Zoopla can seemingly do no wrong compared to Rightmove. On the subject of reporting trends in asking prices, they don't seem to be as popular...
For comparison, here's what Shipside said a few weeks back:
"January often sees the beginning of a ‘spring bounce’ in the asking prices of properties coming to market, and there is again evidence of this with an increase of 1.4% in the first week of 2012."
RM's reference to asking prices rising in anticipation of a Spring Bounce does highlight the highly unusual tone and timing of this particular Zoopla release.
Property Hawk: property is only worth what someone is willing and allowed to BORROW.
It cause me no end of problems, in my area it is simply wrong.
Every agent should understand the fundamental fact that any property sells at a suitably low price….no matter what the market. In addition a key fact is that sellers in most cases wish to test the market at a level they have in mind before following the agent’s advice and agents duly comply.
Agents need instructions to sell and let in order to survive and who is to say that the agents thoughts where right and the vendors wrong, especially if a buyers turns up who sees the home at the price of the seller.
As for the remarks I read here about Zoopla’s price estimates, they provide the tool to consumers to generate selling enquiries to its member agents who in turn have the opportunity to turn a conversation into business and to be fair the homevalues tool does extremely well at its purpose.
Desk top valuation devices will never take the place of a good agent that is well connected with the community they serve being able to impart local knowledge and come up with the most accurate suggestion of price to test the market.
At the end of the day, a property, like any commodity is only worth what someone is willing and able to pay.
So if no agent with any business sense over values any property, then who is doing all the listings then?
Every one knows Zoopla's valuation model is wildly inaccurate, perhaps they were using it to draw up these stats.
Quite right. The only way to sell these days is to price competitively. Some buyers still make offers without actually checking with their lenders, and are bounced on valuation.
Prices are coming down and it's a good thing. The smart Estate Agent is the one who can convince his/her clients to price aggressively.
Pure over-pricing by EA's desperate to win business.
In this case here is a root cause of overpricing and one that agents themselves have to contend with.
Zoopla provide applicants and vendors registered with them all sorts of stats about their local market. Goodness knows where some of them come from but they are simply wrong as already proved in this thread.
Find a decent agent and they will know and will tell you the truth. Overpriced properties on a falling market are unprofitable for the agent. See below time average on market in Scunthorpe is over 10 months, no sale no fee means that agents are paying to advertise on the web and in the newspapers for 10 months before they recoup their expenses.
Trust me no agent with any business sense over values any property. It is vendors, inspired by rubbish stats on portals like Zoopla that makes them think they are expertswho over valuing their homes in this market
trying to look smart and trying to appear up there with Miles but does anyone really think 16% of the UK population is looking to move house?
The figures are 400% higher than the total number of UK Agency staff could posibly cope with.
Less than 3% actually move (rent or buy) each year so Whoever produced this PR is just making themselves look silly.
Pure over-pricing by EA's desperate to win business.
Pure spin
Dooooom!
Can I suggest a new meme?
We have LOL, ROFL & LMFAO.
DL&S = Damned Lies & Statistics...?
the Zoopla adverts claims 18 leads per minute, working the land registry figures through. 17 of those leads never buy a thing.
otal properties for sale in Scunthorpe: 1,057
Properties for sale in Scunthorpe listed in the last 14 days: 68
Average* price of properties for sale in Scunthorpe: £120,505
Median* price: £111,950
Average Time on Market (ToM) in Scunthorpe*: 314 days
Median Time on Market (ToM)*: 223 days
According to Zoopa report the avearge price of property was £144800 and is now £132,000 a full 12K higher than the real average.
What did Mark Twain say about stats?
A quick glance shows that Zoopla are pumping out more rubbish and that they do not understand what they are blabbing about.
Their models might work for their own local area but the crud they email me, registered as an applicant to assess their offering, is simply spurrious nonsense that seeminly relates to my area but is wholly wrong.
Without qualification what is the £261066 thet are refferring to?
A fall of £19580 on the average UK house price is a reduction of 12% not 7%
Someone is either rubbish at maths or has written a shoody press release, either way the figures need qualifying.
If Zoopla are puming this stuff out to us imagine the effect on the genuine applicants and vendors who are being mailed this stuff.