Property sellers drop asking prices by £75k as housing market shows signs of ‘cooling’

House prices: Expert discusses 'interesting' pricing differences

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New research by property purchasing specialist, HBB Solutions, has found that the pandemic property boom is leading to home sellers overpricing their properties. Later down the line, property sellers are then reducing their asking prices by a whopping 20 percent or £75,000. The property site looked at which homes have dropped their asking prices and by how much.

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The new research revealed that across Britain, sellers are dropping their asking price by an average of 19.8 percent – reducing from £380,637 to £305,353.

This works out at an average reduction of £75,284.

The South East and London are the regions in which sellers are frequently forced to reduce their asking price.

The South East accounts for 24 percent of all property asking price reductions across Britain.

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Meanwhile, London accounts for 14 percent of all asking price reductions across the country.

The North West also has some of the highest levels of repricing with 10 percent reducing their asking prices.

Property sellers in the North East are being forced to reduce their asking prices by the largest amount.

Typically, a seller will reduce their asking prices by 20.5 percent in the North East.

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In the West Midlands the average asking price reduction is 20.4 percent, in Yorkshire & Humber and Wales this drops to 20.2 percent which is higher than the national average of 19.8 percent.

While London’s home sellers may be one of the most likely to reduce their asking price, they are only dropping their prices by 19 percent which is the most marginal reduction of all regions.

Managing Director of HBB Solutions, Chris Hodgkinson, said he can understand why sellers are overpricing their homes, but that the property market is showing the first signs of “cooling”.

He explained: “For quite some time now, we’ve seen report after report of how the housing market is booming and house prices are climbing to dizzying new heights.

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“So it’s understandable that sellers entering the market may be doing so with a little too much enthusiasm when it comes to pricing their home.

“The consequence? They’re finding that even in a sellers market, an overpriced home will always struggle to sell and the inevitable course of action required to secure a buyer is to lower their asking price expectations.

“What we’re also almost certainly seeing is the first signs of a cooling market, as the economic pressure of rising inflation and the increasing costs associated with mortgage rates, in particular, start to dent home buyer confidence and the sums they are willing to pay.”

Last month, it was reported that the price of homes coming to the market had risen once again for a sixth consecutive month.

However, it’s clear that property price growth is slowing down.

The average asking price of a property in the UK increased by 0.4 percent in July to reach an eye-watering £369,968, according to Rightmove’s house price index.

Rightmove expects that the average UK house price to have grown by seven percent by the end of 2022.

The property site had originally predicted five percent growth at the start of the year.

Research from Halifax also found that the average price of a home hit a new record of £271,613 in June.

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