Homeowners desperate to sell their property are marking down the price by an average £24,947 from the original asking price.
The latest data from Zoopla shows that almost one-third of UK homes have been discounted reducing the value by £24,947 or 8.4% less for the average property.
Significant discounts can be found on the Isle of Man with 8.3% off the asking price averaging a saving of £41,212, followed by Bradford lower by 8.0% and Doncaster with 7.2%.
London has the largest reduction of £62,581 with the average price reduction of 6.6% off the asking price.
Lower house prices is good news for first time buyers as they require a smaller deposit to get on the property ladder.
The rise in the number of remortgage buyers staying in their existing home rather than trade up or downsizing many reduce the supply of suitable properties on the market.
Price reductions across the country
Across the country one-third of properties are lower than the asking price with 41.8% of homes in Twickenham offering discounts and 41.5% in Mitcham.
The following table from Zoopla shows the top ten areas with the largest asking price reductions to April 2018.
| Area | Price reduction (£) | Price reduction (%) |
|---|---|---|
| Isle of Man | £41,212 | 8.36% |
| Bradford | £11,768 | 8.01% |
| Doncaster | £12,894 | 7.19% |
| Blackburn | £10,059 | 7.06% |
| Hull | £9,932 | 6.95% |
| Mitcham | £41,797 | 6.77% |
| Liverpool | £12,112 | 6.76% |
| Newcastle | £12,166 | 6.68% |
| London | £62,581 | 6.66% |
| Swansea | £15,607 | 6.59% |
Although the Isle of Man leads with the highest reduction of the asking price the proportion of homes that are discounted is 29.9%.
In London the average property value according to the Office for National Statistics (ONS) is £471,986 with 34.6% of the homes on the market discounted.
In the London borough of Kensington And Chelsea the average home is worth £1.4 million and Zoopla data shows a mark down of 7.8% saving about £113,000.
Home movers wanting to trade up when prices are falling they will find their next property is less expensive which means they need a small deposit or mortgage.
Opportunities for first time buyers
There are potential savings for first time buyer on the current average house price of £203,417 which could enable them to buy their first home.
Lawrence Hall a spokesman for Zoopla said at present, nearly a third of properties on the market have been reduced in asking price, with some average discounts eclipsing eight per cent.
Those seeking bargains could consider areas such as Bradford, Doncaster and Blackburn in particular, or Twickenham to live closer to the capital, says Mr Hall.
Even so the Royal Institution of Chartered Surveyors (Rics) reported new buyer enquiries fell for the 11th consecutive month, with a lack of stock on the market limiting choice and depressing demand.
Lower prices may deter buy-to-let investors from selling rental properties and older homeowners also helping to the limited housing stock as they no longer need trading down to release capital.
Instead there is higher activity with equity release buyers able to stay in their homes while accessing wealth in their property using a lifetime mortgage to maintain their standard of living or buy a more expensive home.
What are your next steps?
Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to improve your quality of life, home or garden improvements and holidays of a lifetime.
Learn more by using the mortgage cost calculators, equity release mortgage calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
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