Asking prices rise in town, but fall in country

The average asking price of properties for sale in urban areas in England is up 1.9% on this time last year, while asking prices for properties in the country are down 5.1% over the same period, according to the latest research from PrimeLocation.com.

Urban asking prices now stand at an average of £315,170, up from £309,280 one year ago while rural asking prices are now £272,180 on average, down from £286,890 this time last year. That makes the average rural retreat 14% cheaper to buy than the average urban pad. (Urban/rural areas as defined by Department for the Environment, Food and Rural Affairs).

Over the past 12 months, country property prices have fallen hardest in the North East (down 11.3%) and the South West (down 10.0%). The only real bright spot in the country property market over the last year has been in the South East where rural asking prices are up 2.2%. Asking prices in urban areas have gone up by the largest amount since this time last year in London (up 12.2%), followed by the West Midlands (up 7.9%).

Lawrence Hall of Primelocation.com, comments: “While country houses in the South East have seen their prices increase, fuelled by those looking to escape city life, on the whole the rural property market has been struggling with an overall decline in asking prices of over 5% from last year. Of course, for some this recent decline may create the perfect opportunity to make the leap from town to country.”

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Property Sellers Trim Asking Prices To Secure Summer Sales

  • 37% of properties currently for sale have had asking prices reduced
  • Average asking price reduction now stands at just under £19,000
  • Biggest reductions currently on offer in Newcastle and Liverpool

The number of properties for sale across the UK that have been reduced in price at least once by their owners to try to secure a sale is at a nine-month high, according to property website Zoopla.co.uk.

37% of UK properties currently on the market have seen their asking price reduced at least once since first being listed for sale, up from 34% just three months ago. With the average price reduction from the original asking price now at just under £19,000 (7.6%) house hunters can look for property bargains by sorting search results on Zoopla.co.uk by those most reduced in price.

The biggest discounts can currently be found in Newcastle upon Tyne where sellers have knocked an average of 9.6% (£18,888) off their original asking prices and Liverpool where the average reduction is currently 9.1% (£13,643). Wakefieldtops the list of places with the highest proportion of price-reduced properties on the market today (51%), followed by Rotherham (45.6%) and Barnsley (44.7%).

Nigel Lewis of Zoopla.co.uk said, “Activity levels tend to fall over the summer months as holidays delay the buying process. With the recent bad weather and the extended Jubilee bank holiday, the rise in proportion of price reductions is a signal that sellers have been doing everything they can to try and tempt those buyers still in the market. Once the distractions of summer holidays and the Olympics are gone buyers will once again be able to focus attention on their property search and this should bolster confidence among sellers.”

Top 5 Areas with Biggest Asking Price Reductions

Rank

Area

Avg. Price Reduction (%)

Avg. Price Reduction (£)

% of Homes on Market Reduced

1

Newcastle upon Tyne

9.6%

£18,888

37.9%

2

Liverpool

9.1%

£13,643

39.6%

3

Stockport

8.9%

£17,813

44.1%

4

Rotherham

8.7%

£13,170

45.6%

5

Romford

8.6%

£25,033

42.5%

Source: Zoopla.co.uk (August 2012)

Top 5 Areas with Highest Proportion of Asking Price Reductions

Rank Area

% of Homes on Market Reduced

Avg. Price Reduction (%)

Avg. Price Reduction (£)

1

Wakefield

51.0%

8.6%

£15,763

2

Rotherham

45.6%

8.7%

£13,170

3

Barnsley

44.7%

7.9%

£10,844

4

Stockport

44.1%

8.9%

£17,813

5

Warrington

43.9%

7.8%

£14,267

Source: Zoopla.co.uk (August 2012)

Top 5 Areas with Smallest Asking Price Reductions

Rank

Area

Avg. Price Reduction (%)

Avg. Price Reduction (£)

% of Homes on Market Reduced

1

Plymouth

5.8%

£10,761

38.4%

2

Reading

6.0%

£19,420

33.0%

3

Northampton

6.1%

£12,041

39.6%

4

Worthing

6.2%

£15,660

35.1%

5

Bristol

6.3%

£13,865

37.9%

Source: Zoopla.co.uk (August 2012)

Top 5 Areas with Lowest Proportion of Asking Price Reductions

Rank

Area

% of Homes on Market Reduced

Avg. Price Reduction (%)

Avg. Price Reduction (£)

1

London

29.0%

7.0%

£44,118

2

Chorley

29.8%

7.1%

£12,929

3

Lincoln

32.4%

6.7%

£11,073

4

Reading

33.0%

6.0%

£19,420

5

Hull

34.0%

7.6%

£8,943

Source: Zoopla.co.uk (August 2012)

Average property discounts hit all-time high

  • Over a third of all properties currently for sale have had asking price cut
  • Average UK asking price discount now at all-time high of £19,580
  • Biggest reductions currently on offer in Glasgow, Blackpool and Maidstone

Over a third (36.7%) of UKproperties for sale currently have been reduced in price at least once since first coming onto the market. The average discount off the original asking price being offered by sellers across the UKon these homes now stands at £19,580 (7.5%), according to property search website Zoopla.co.uk.

The average discount on price-reduced properties on offer today is over £1,000 more than this time last year when it stood at £18,475 (7%). Homeowners have slashed huge sums from their original asking prices in an attempt to attract buyers. The total amount reduced from the asking prices of all properties currently for sale across the country stands at £2.5 billion.

Zoopla.co.uk, which lists hundreds of thousands of properties for sale, offers a unique facility on its website that lets users sort search results by those that have been most reduced in price, highlighting potential property bargains to home buyers across theUK.

Glasgow tops the list of places where the biggest discounts are currently on offer with an average price reduction of 9.2% (£12,566). Sellers in Blackpool are also making big concessions, knocking 9% off their original asking prices on average, whilst Maidstone rounds out the top three areas with the highest average reductions in price at 8.5% (£19,668).

Stockport has the highest proportion of discounted properties for sale with nearly half (49%) of sellers having cut their asking prices at least once. Other areas where a big proportion of sellers have felt the need to drop prices include Chesterfield (45%) and Rotherham (44%).

Nicholas Leeming of Zoopla.co.uk, said, “The current average discount of £19,580 is a new high indicating that sellers have come to terms with the market realities. Pricing correctly remains key when selling a home and whilst there is a shortage of sale stock currently, buyers are more discerning and more informed than ever before. Serious sellers must do their homework and follow the advice of their agent before settling on an asking price – otherwise they may well find their property on the market for longer than they’d hoped.”