Property price cuts highest in two years

salePA

There's good news. A massive sale is on, with discounts at their highest level for two years. Everything must go, with as much as 54% knocked off some original prices.

The bad news is that this is the property market we're talking about, and anyone who wants to sell their home is going to have to match these incredible offers.

Slashed prices

According to property website Zoopla.co.uk, over 40% of all UK properties currently on the market have had their price slashed at least once. The average discount off the original asking price has reached more than £19,500, or 7.4%, which is the biggest cut for the last two years. In all it means UK homeowners have had to slice £5 billion off the asking prices of their properties.

Biggest falls

The biggest discounts are in Glasgow, where the average reduction currently stands at 9.1% (£12,881). Newcastle and Bolton follow closely with asking prices currently discounted by an average of 8.9% and 8.8% respectively. All but one of the top ten areas with the highest price reductions are in the North.

While the London property market continues on its own strange and unlikely path, nearly a third (32.6%) of properties for sale in the capital have had to be reduced in price - so it's not immune to the downturn.

Nicholas Leeming, Business Development Director of Zoopla.co.uk, said, "With the current economic uncertainty and difficulty buyers face in finding funding, it is no wonder that sellers are having to reduce prices in order to encourage sales. And with the latest economic forecasts for 2012 looking decidedly gloomy, sellers may have to reduce their expectations further if they are serious about making a move."

For some this will great news as properties finally fall within their reach. For others this means their home is going to have to fall even further in value and deeper into negative equity if they are to ever stand a chance of getting out.

Biggest Asking Price Reductions

Glasgow 9.05%
Newcastle 8.86%
Bolton 8.82%
Sunderland 8.47%
Hull 8.4%
Liverpool 8.37%
Ashford 8.23%
Doncaster 8.22%
Rotherham 8.18%
Wigan 8.12%

Smallest Asking Price Reductions

Croydon 5.76%
Swindon 5.84%
Chelmsford 5.91%
Bedford 6.07%
Cardiff 6.12%
Luton 6.13%
York 6.16%
Poole 6.37%
Plymouth 6.39%
Southampton 6.42%
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