LONDON, November 28, 2011 /PRNewswire/ --
-According to Zoopla.co.uk, 2 out of 5 UK properties currently on the market have been reduced in price; the biggest price reductions are in Glasgow as sellers knock 9% off asking prices-
Over 40% of all UK properties currently on the market for sale have experienced at least one price reduction, as sellers try to entice buyers in a struggling housing market. And the average discount off the original asking price has reached a new high at over £19,500, according to property website Zoopla.co.uk.
The amount by which sellers have reduced their price expectations has risen significantly over the past 12 months, with the average property now being discounted by £3,500 more than this time last year. Last November, amongst those homes that had been reduced in price, the average price reduction was 6.1%. Today that figure stands at 7.4% which represents a combined discount of over £5 billion off the initial asking prices as sellers become both more realistic and more desperate to close a sale by the end of the year.
Glasgow tops the list of towns where the biggest discounts are on offer with the average reduction in the city currently standing 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, where the number of sellers reducing their asking price is also the highest. Sunderland tops the list of towns with the highest proportion of properties on the market that have been discounted at least once with more than half (53.6%) of sellers there having to reset their expectations downwards at least once.
Whilst the London property market continues to demonstrate its resilience with the lowest proportion of price-reduced homes in the UK, nearly a third (32.6%) of properties for sale in London have had to be reduced in price indicating that the capital is not entirely immune from the conditions being felt around the rest of the country.
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."
Zoopla.co.uk is the UK's most comprehensive property website, focused on empowering consumers with the resources they need to make better-informed property decisions. We help our users make sense of the residential property market by combining property listings with market value data, local information and community tools.
Zoopla.co.uk was founded on the principles of transparency and efficiency and everything we do aims to make the market more effective for both property consumers and professionals alike. By combining free, instant value estimates for every UK home with sold prices, local market information and hundreds of thousands of properties available for sale and to rent, Zoopla.co.uk has rapidly become the ultimate destination for property consumers to search for property and do their market research. Our unique features allow users to gain an insight into the market and discover information they won't find anywhere else. And, as a result, we have become one of the most valued sources of both applicant and vendor leads for UK estate agents.
Launched in 2008, we are the fastest growing property website in the UK, now attracting over 10 million visits per month and are proud to have been awarded numerous accolades including being listed in the Top 10 UK Tech Companies (Guardian) and the Top 10 Most Innovative UK Companies (Smarta 100) as well as being voted the UK's Best Property Portal (Web User, Daily Mail Awards, Website of the Year).
Zoopla Ltd is a privately held company with a highly experienced and proven management team, led by Founder and CEO, Alex Chesterman, and backed by well-respected angel investors and leading venture capital firms Atlas Venture and Octopus Ventures.