Home sellers cut asking prices on 3,000 properties a day
More property asking prices are being cut than at any time in 15 years, data shared with the BBC shows.
A record number of UK home sellers have cut their asking prices on 3,000 properties each day over the past month, according to property portal Rightmove. This surge in price reductions is attributed to a surplus of homes on the market and sellers setting unrealistic expectations. The proportion of listed homes with a price cut has remained high since peaking in 2023.
Buyers are now being more selective due to tight budgets and rising mortgage rates. Rightmove data shows that homes with a price reduction typically take 119 days to sell, compared to 39 days for those listed at one price. In September, 34% of listed homes had a price reduction, only slightly lower than the recent peak of 36% in September 2023.
Rival portal Zoopla notes that buyers are being more cautious and selective, especially with mortgage rates at a three-year high. While the number of homes for sale increased by 5% in September compared to the previous year, the number of sales agreed fell by 9%. Zoopla's data reveals that a quarter of newly-listed homes in September had been listed previously, often at higher prices.
Sellers face longer selling times, with properties needing a price reduction being half as likely to find a buyer within three months. Emotional factors also influence sellers' pricing decisions, as they consider the time and money invested in their home. Despite these challenges, some sellers may not lose out if they negotiated aggressively initially and experienced value growth while owning the property.
Higher prices and stamp duty in Scotland, along with landlords not needing to sell, contribute to faster sales in Scotland compared to other regions.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
