House price-reductions at two year low

A survey by property website Zoopla has shown that the proportion of properties on the market that have seen their asking price reduced from their original level is at a 2-year low.

32.8% of properties currently for sale have had their asking price reduced at least once, down from 36.9% three months ago and 40.4% this time last year.

Whilst this is encouraging news the average price reduction on those properties that have been discounted is up to its highest level in two years.

The average reduction is now £20,612, whilst it was £18,993 three months ago.

There is considerable regional variation in figures with some areas seeing a high proportion of properties with slashed asking prices such as Wakefield (50.4%), Chesterfield (42.5%) and Barnsley (42.2%).

Edinburgh, Poole, Telford, Reading and Wolverhampton have the smallest asking price discounts on offer currently.

Lawrence Hall of Zoopla.co.uk said: “The proportion of properties that have seen their price reduced and the average amount of the discount provides good insight into the strength of the local market.

“With the proportion of discounted properties nationally at a two-year low, this would indicate that sellers are feeling more confident than they have for some time.

“But there are places where the market clearly remains weak, such as Wakefield, where over half the properties on the market have been reduced in price at least once.”

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