Reduced asking prices are almost a thing of the past according to new research that reveals the number of properties for sale that have been reduced in price since coming onto the market has fallen over the last three months.
The research from Zoopla shows that average asking price discount has also fallen, despite the changes to stamp duty land tax in March and £2.9 billion has been knocked off asking prices in total.
One third, 34 per cent, of properties currently for sale have been reduced in price since first coming onto the market, down from 37 per cent in February. And the average discount on the original asking price has fallen by more than £500 over the same period. Average asking price reductions now stand at £19,012 or 7.5 per cent.
The drop in proportion and size of asking price discounts has emerged despite the reintroduction of stamp duty for first time buyers and the introduction of the 7 per cent stamp duty tax on properties sold at over £2 million.
“The changes to the stamp duty rules significantly increased the cost of buying for many and there were concerns this would quash demand and force sellers to make bigger cuts in their asking prices. However, it appears demand has remained strong enough for average discounts to actually fall,” says Nicholas Leeming (left) of Zoopla.
Newcastle tops the list of places where the biggest discounts are currently being offered by sellers with average reductions of 11.1 per cent or £22,151. Sellers in Liverpool have also made large concessions, knocking 9.2 per cent or £14,031 off their original asking prices on average.
Rotherham has the highest proportion of discounted properties for sale with 43.9 per cent of sellers having cut their asking prices at least once. Other areas with a high proportion of asking price reductions include Swansea at 42.5 per cent and Barnsley at 41.6 per cent.
“While sellers in some areas have had to make significant price concessions in order to attract buyers, it’s encouraging to see the overall trend of fewer price reductions and a drop in the size of these reductions,” adds Leeming.