13:41 PM, 10th May 2016, About 5 years ago 1
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.
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.”
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