More sellers having to turn to price cuts
Wednesday 17th August 2011
Two in five properties on the market have had their price lowered at least once, with the average reduction being 7.1% off the original price – equivalent to a cut of £18,500.
The news comes amidst more pain for people's finances, as inflation rises above 4%, while the Government announced this morning sharp rises in unemployment and the number of people on Job Seeker's Allowance.
According to Zoopla, 38.6% of all properties currently for sale in Britain have had their asking prices cut, up from 37% three months ago and well ahead of the 32% one year ago.
The price cut itself is also more than a year ago, when the average discount from the original asking price was 6.1%.
Even properties over £1m, where the market has been the most resilient, have had more price reductions. Of all £1m-plus 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.
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, followed by Glasgow (8.2%) and Newcastle-upon-Tyne (8.2%), while other major northern cities like Liverpool are also in the top ten.
London has the lowest proportion of price-reduced homes in the UK. Nevertheless, one-third of properties for sale in the capital have had their prices chopped.
In Stockport, nearly half (47.8%) of all properties for sale have been reduced in price since coming on to the market, closely followed by Huddersfield (46.3%) and Chesterfield (45.8%).
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