Key points –

1. Hundreds of properties in England are reducing their asking prices weekly due to affordability pressures and a shift in market dynamics.
2. The most significant price reductions are occurring in the South East and London, with approximately 7% of newly listed homes in these regions lowering prices.
3. Despite price reductions, only a small percentage (4.6%) of these homes actually find buyers quickly, suggesting that lower prices don’t guarantee faster sales.
4. Yopa’s CEO Verona Frankish advises sellers to be patient and accurately price their properties, as this strategy leads to quicker sales compared to starting high and then reducing prices.

Sellers are increasingly slashing asking prices to attract buyers amidst a challenging property market. Recent research has shed light on a growing trend: hundreds of properties are seeing price cuts each week. The data, gathered at the end of November, indicates 959 properties per week (or 137 daily) reducing their asking prices. This is happening across England, with 6% of homes listed in the last 30 days experiencing price drops.

Regional Rundown

• South East and London: These regions are witnessing the most significant price reductions. In the South East, 936 homes (7% of newly listed properties) have slashed prices. London follows closely with 821 properties (also 7%) reducing prices.
• East of England: This region ranks third, with 6% of newly listed properties (about 19 per day) cutting prices.

The Impact of Price Reductions

Interestingly, price reductions don’t guarantee a quicker sale. Of the 4,109 homes that reduced prices within 30 days of listing, only 191 found buyers – a mere 4.6%. The West Midlands shows the highest demand for these reduced-price homes, but even there, only 6.3% have successfully gone under offer or sold.

Expert Insights from Yopa’s CEO

Verona Frankish, Yopa’s CEO, provides a deeper understanding of the situation. She highlights the impact of higher mortgage rates, which have decreased the number of buyers, shifting the market’s balance of power from sellers to buyers. Despite this, property values have remained stable.

Tips for Sellers

• Patience Pays Off: Sellers are advised to hold their nerve. Quick price reductions might not be the best strategy, as less than 5% of those who reduce prices in the first 30 days find buyers.
• Accurate Pricing Matters: Rightmove’s previous research suggests that accurately priced properties sell in less than half the time compared to those initially priced higher and then reduced.