More house sellers stick to price

for sale signs

Less than a third of current house sellers have knocked some cash off their asking price, in a further sign that confidence is returning to the market, a property website has said.

Some 31% of homes on the market have had the asking price cut, marking the lowest proportion recorded in two-and-a-half years and a sharp drop from 37% a year ago, according to Zoopla.
The website suggested sellers are becoming more likely to hold firm on their asking prices amid signs that the market is improving. However, the findings also point to sellers in the North being more likely to chip away at their prices to achieve a sale than those in southern regions.

Wigan, Barnsley, Rotherham, Preston and Doncaster were named as the towns and cities with the highest proportion of price-reduced properties, with around 40% of homes on the market in these areas having undergone such cuts.
Romford in Essex has the biggest price reductions in the UK, with sellers knocking an average 10.3% or £32,289 off the asking price, with the Lancashire seaside town of Blackpool coming second.

Of those homes that have had their price reduced, the average discount on the original asking price across the country is 6.9% or £21,000. Zoopla took the findings from its website, which covers 90% of the market. It has been regularly monitoring asking price reductions since the summer of 2010 and said the current national proportion of homes with discounts is the lowest it has seen.

London, where house prices have held up strongly compared with the rest of the UK due to strong demand from overseas buyers, has one of the lowest shares of discounted properties at 27%.

The English capital comes second only to Swansea in South Wales in terms of the lowest proportion of homes for sale which have had a price cut. However, Swansea sellers who have made reductions are also offering some of the biggest discounts recorded in the study - at almost 10% or £18,649 on average.

Edinburgh was named as the city with the lowest asking price reductions, with typical discounts of less than 5%, and the proportion of the homes on the market with a price cut is also below the national average.

Zoopla spokesman Lawrence Hall said the findings indicate "growing confidence in the market". He added: "There is still a big regional divide, with sellers in the North having to discount more often and by a greater amount."

© 2013 Press Association
Read Full Story