House Prices Slashed Again!

House Prices Slashed Again!

The amount by which sellers have slashed their prices expectations has risen significantly over the past year.

Current data shows that over 40% of all UK property on sale in Britain at the moment has been reduced in price at least once.

It seems according to recent research that approximately two out of every five UK properties for sale have been reduced in price to entice buyers in what is currently a stagnant, struggling housing market.

The latest falls come as the squeeze in consumer spending power, a weak job market and the euro zone debt crisis all hit confidence.

Sellers are becoming more and more realistic about the value of their homes in today’s economic climate.

In November 2010, among those homes that had been reduced in price, the average price reduction was 6.1%. However figures for today stand at a whopping 7.4%, this represents a discount of nearly £5 billion off collective initial asking prices.

According to property website zoopla the average discount off the original asking price has reached a new high of over £19,500.

Whilst the London property market continues to demonstrate its resilience with the lowest proportion of price reductions in the UK, the north it seems has the largest price reductions.

Nicholas Leeming, of zoopla.co.uk said “with current economic uncertainty and the difficulty buyer’s face in finding funding, it is no wonder that sellers are having to reduce prices in order to encourage sales”.

With the latest economic forecasts for 2012 looking decidedly gloomy, it seems that sellers may still have to reduce their price expectations further if they are serious about making a move.