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.”

Rate this article:
X