Zoopla: Asking price cuts hit five-year high 

Sellers are cutting asking prices by an average 4.5% discount to achieve a sale, Zoopla claims.

The figure is the highest for five years as the buyers’ market takes hold, the portal said.

More than 40% of homes currently listed for sale on Zoopla have seen their asking prices reduced to attract price-sensitive buyers, according to data from the property website.

Zoopla’s latest House Price Index found the average discount to asking price is £14,100, which, it claims, means sellers are having to forgo a third of their pandemic house price gains.

The average UK home grew in value by £42,000 during the pandemic, suggesting sellers are forgoing, on average, 33% of their pandemic gains, Zoopla said.

In contrast to 2022, Zoopla said, the stock of homes for sale is up by more than 60% compared to last year.

Demand in the four weeks to 19 Feb is 8% higher and sales agreed up 1% compared with the same period between 2017 and 2019.

When looking annually, demand is down 51% and sales agreed have fallen 24%.

Slower sales and a steady flow of new supply have boosted the stock of homes for sale by more than 60% compared to last year, according to Zoopla.

Its report found that the average estate agent office now has 24 homes for sale compared with just 15 a year ago, as supply returns to normal levels and increases choice for buyers, giving them more room to negotiate on prices.

The slower market means annual house price inflation has slowed to 5.3% in January to £260,800.

Richard Donnell, executive director at Zoopla, said: “Greater realism on the part of sellers is supporting housing market activity in the face of higher borrowing costs. 

“Many homeowners are sitting on sizeable house price gains made over recent years and have more room to be flexible accepting offers below the asking price. 

“Discounts to asking price have widened and while 4-5% discounts are manageable, if these were to widen further then this would point to a greater likelihood of larger house price falls. We believe the market remains on track for a soft landing in 2023 with modest price falls of up to 5% and one million housing sales.”