Homeowners cut asking prices to sell properties
Both the total number of price-reduced properties on the market in the UK and the average amount by which they have been reduced have climbed over the past three months.
Some 37.4 per cent of all properties listed for sale on Wednesday have experienced at least one price reduction since coming to the market, up from 36.4 per cent in November, data from Zoopla has shown.
The average discount now stands at £18,475 or 6.9 per cent off the original asking price, up from £15,879 in November.
Zoopla claimed that the figures provide a clear indication of sellers becoming more realistic in terms of their expectations and will be a welcome sign to buyers as the gap narrows between asking prices and what buyers are willing to pay.
This is most evident at the top end of the market, for properties listed for sale over £1m, where the average discount has climbed to 10 per cent off the original asking price, up from eight per cent in November.
Nicholas Leeming, commercial director at Zoopla, said, "As a result of weaker than expected demand in the last half of last year, sellers have progressively reduced asking prices to more realistic levels in order to achieve sales.
"The traditional influx of new properties on the market at the start of the year has created even more intense competition amongst sellers.
"Even the resilient £1m+ market is showing signs that it is not immune from the general economic pressures as reductions have jumped at that end of the market."