Housing market slowdown leads to price reductions
It has been revealed that the asking price of 37% of homes for sale in the UK has been reduced by an average of £26,000 by the seller in a bid to get the required sale. This is an increase since April, in a clear sign of a slowing housing market.
The latest figures were released by the property website Zoopla and show that 37% of listings have been dropped, compared to just 32% in April. In London, around 39% have been forced to rethink their selling price. This increases to 46% in Brighton, while in Glasgow, just 19% needed to take this action to sell their home. In cash terms, the largest drop is £127,000 for properties in Kensington and Chelsea, London.
Lawrence Hall from Zoopla has pointed out that this could be welcome news for first-time buyers and he expects that these reduction figures will continue to rise for the coming months.
The reduction figures are highlighting the issue of the housing slowdown. House price growth in England and Wales have dropped to a 6 year low during September, with those homes in the South East suffering the most. The growth in house prices was at a yearly average of 4.5% last year, while this year is recorded at less than 1%.
This has prompted a change in buying figures, with the number of overall transactions dropping by 16% with just 72,500 sales during September.
These figures have been released amid a housing shortage due to a lack of construction, a growing population and a change in the profitability of buy-to-let investments due to tax increases.