Sale price discounts diminish as market strengthens

Price discounts are diminishing as the housing market strengthens, according to data from Knight Frank.

The average discount to the asking price for sales outside London is 1.2 per cent since the market re-opened. That compared to 2.4 per cent during the market lockdown. 

In London, the average discount has narrowed to 5.5 per cent from 6.4 per cent over the same period.

“What this reflects is that prices outside London have been more realistic for a longer period of time and are therefore now showing more resilience” says an agency spokesman.

Knight Frank says house prices outside the capital peaked way back in the third quarter of 2007, however they remain below this high point and growth has been subdued in recent years. 

Meanwhile, London prices are now between 20 and 40 per cent above the pre-financial crisis peak of 2007.

The agency adds that the number of offers accepted outside the capital in the week to June 6 was the highest on record, and up 52 per cent compared to the five-year average, as vendors agreed deals against a backdrop of narrowing price discounts and pent-up demand. 

In London, the figure was 34 per cent above the five-year average and the third highest weekly figure this year.

The number of new prospective buyers continues to increase.

For markets outside London in the week ending June 6, the figure was the highest it has been since May 2018 and was 14 per cent ahead of the five-year average. 

In London, the number was 54 per cent ahead of the five-year average but lower than levels recorded at the start of this year when the post-election bounce had an impact.