Research reveals nearly 50% gap between asking and selling prices
The UK’s online estate agent, Emoov has revealed data showing a 45% difference between the current average UK asking price of £414,359 and the current selling price of £226,906.
Remarkably, England has the largest gap between the two indices; whilst properties are selling for an average of £243,639, the average listing price stands at £323,336 – a difference of 25%. Slightly smaller, the difference between asking and sold prices stands at 21% in Wales, whilst Scotland has the smallest shortfall, with sellers asking £186,371 and buyers paying £156,495 on average.
The estate agent says that home sellers should not feel the need to reduce their selling price by 45%, stating: “The gulf between the average price of homes on the market compared to those that are actually selling in the same market.”
On a national basis, the biggest gap is in South Gloucestershire at 43%. Here, the average asking price is currently £470,117, with properties selling for £267,397 on average. Home to the second largest gap is Inverclyde in Scotland, with the average selling price 41% lower than the average asking price of £159,932.
In England, Nottingham has the second largest gap and also fourth largest in the UK, with a difference of 31%. The largest gap in Wales can be seen in Gwynedd, where the average asking price is currently £186,362 compared to the average selling price of £144,018 – 23% less.
Founder and CEO of Emoov, Russell Quirk, commented: “In slower market conditions a seller’s expectation is always likely to differ from what the market dictates and what a buyer is willing to pay.
“It’s only natural that a seller will tend to overprice their property, largely due to the emotional element, and while many will have to reduce their price to find a buyer this research doesn’t suggest they have to do so by 45%.
“What it shows is that the average asking price of properties being listed in the UK is at the £400,000 bracket, while those that are selling have an average price in the £220,000 bracket.
“That’s not to say that those appropriately priced for the £400,000 bracket aren’t selling, but in current market conditions its business as usual for buyers in lower price brackets while things are more lethargic in the higher price tiers.”