Home sellers cut prices to find a sale

Home sellers cut prices to find a sale

0:02 AM, 23rd December 2022, About 2 years ago

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A major house price index says that the UK’s house price inflation is continuing to slow down – leading to property asking prices being slashed.

According to Zoopla, house prices in November rose by 7.2% over 2022 but the slowdown in prices is ‘gaining momentum’. The price rise equates to £17,500 on average over the year.

The property platform also says that sellers are accepting 4% discounts on asking prices to achieve a sale.

There has also been a reverse in the trend that saw buyers head to the countryside and coast with more buyers looking at towns and cities.

As a result, Zoopla says that next year demand for flats and urban areas will strengthen.

Affordability and value for money are key

And, they add, affordability and value for money are key to the market outlook for 2023.

Zoopla is also predicting that house prices will drop by 5% next year.

Richard Donnell, Zoopla’s executive director of research, said: “The underlying rate of quarterly price inflation has slowed from more than 2% during the summer to just 0.3% in the last 3 months – an annualised growth rate of just 1.4%.

“We expect to register quarterly price falls in the first half of 2023, dragging the annual growth rate into negative territory by mid-year.”

‘The search for space’

He adds: “A key trend over the last two years has been the search for space.

“A proportion of buyers have looked to relocate to rural and coastal areas, pushing up demand and house prices more quickly than in other areas.

“Some of the largest gains in house prices over the last two years have been across Wales, the South West, Norfolk and east Kent.

“This trend is reversing, and these markets are seeing market conditions cool.”

‘Year-on-year property price growth is strong’

In response to Zoopla’s latest House Price Index, Nathan Emerson, the CEO of Propertymark, said: “Year-on-year property price growth is strong meaning it remains a good time to sell a home capitalising on the existing growth.

“However, with prices easing and negotiations starting to take effect in the market, it is equally also a good time to buy.”

He adds: “On average, our member agents told us that competition between buyers has dropped by over a third, meaning those looking to secure a new home are more likely to succeed.”

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