Zoopla figures show property prices being more heavily discounted

by Property 118

13:41 PM, 10th May 2016
About 2 years ago

Zoopla figures show property prices being more heavily discounted

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Zoopla figures show property prices being more heavily discounted

New figures from Zoopla show that the average discount on asking price for property has increased to £25,265 (up £4,000 on January) and that 29% of all properties on the website have had their asking price cut at least once since they were listed.bubble

Popular press are calling this the property bubble bursting.

The Halifax figures released yesterday show that the average price of a house fell by 0.8% in April, but this was expected due to the added 3% surcharge on stamp duty for second properties coming into effect on the 1st of April.

The increase in stamp duty skewed the market pre April due to property investors rushing to get purchases completed before the new rate and hence pushing up prices. Demand then dropped off during April and sellers had to offer bigger discounts for market forces to re-stabilise.

Halifax figures also show that the annual year on year increase in house prices was still a robust 9.2% even if this is the lowest figure since last Autumn.

Co-founder of property analysts Propcision, Michelle Ricci, said “we feel the data suggests asking prices are holding steady with levels seen in the past 6 months. That said, there are particular areas of vulnerability that may start to show demonstrable evidence of a downward trend, most notably new builds.”

The area that saw the biggest negotiated discount on house prices from the Zoopla figures was Barnet with the average discount off asking price coming in at £120,969 !

The next highest was Coventry with the average discount a much smaller £27,320.

However, both these figures equated to a similar average percentage discount on the asking price of around 10 to 11%

Lawrence Hall, speaking for Zoopla said “the rise in the average discount to more than £25,000 should be welcome news for aspiring home owners looking to get a foot onto the property ladder. Despite increasing house prices across the country, there’s clearly still space for negotiation.”



Comments

Sunny K

16:27 PM, 11th May 2016
About 2 years ago

While the reduction in house prices is welcomed by most prospective buyers, I am not sure this figures are truly representative. Ancedotely, the west London area which I am interested in has seen reduction in asking price. However the asking price in most instance has been 25% over the sold prices a year ago and the reduction from asking price has been modest at 5-10%. The factors of scare supply and low mortgage rates since April 2016 lead up to buy a property couple of weeks ago which is basically 15% above sold prices last year but still 10% below asking price after two price reduction. We estimate the mortgage saving will be more than the extra stamp duty we paid.


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