Scotland has topped the list, with home sellers lowering their expectations by an average of 22%
New research has revealed which regions of the UK are home to the biggest reductions in the value of properties currently on the market.
GetAgent has analysed property listings across the major property portals to find where home sellers were reducing their property price by the largest margin and which places provided home buyers with the most significant discounts.
Based on listings data where properties for sale have reduced their asking price by 15% or more, Scotland is currently the home selling discount hotspot of the UK. Home sellers that are lowering their expectations to secure a sale are doing so by an average of 22%.
In Wales, homes reducing by 15% or more are currently offering discounts at an average of 21.3%, while in Northern Ireland this reduction is also as high as 21%.
The North West and North East are home to the most significant reductions in England at 20.6% and 20.5% respectively.
London is home to the lowest discount with properties failing to sell in the current market, seeing an average discount of 19.4%.
GetAgent then looked at what these discount reductions mean on the current average property price in each region.
While London is home to the lowest percentage reduction, the high price of property means the capital ranks top for the most prominent monetary discount. On the current average house price of £479,018, a 19.4% reduction would see homebuyers pay £92,829 less for a property that is struggling to sell.
The South East is home to the second-largest monetary discount with savvy homebuyers able to save £64,575 on the current average house price by opting for a reduced property.
The East of England (£58,072), South West (£52,379) and East Midlands (£40,125) completed the top five.
Founder and CEO of GetAgent, Colby Short, commented: We’ve seen the market explode into action in recent months and a tidal wave of buyer demand has resulted in properties flying off the shelves and house prices increasing to an all-time high. Although conditions remain favourable for buyers, particularly with the addition of a stamp duty holiday, many will still be on the hunt for a bargain.
He said, while it’s unlikely that they’ll find an abundance of reduced properties in the current climate, they are out there. So those lucky enough to snap one up will save a considerable amount of money by doing so, in addition to the tax relief already provided by the Government.
There are many reasons that a property may be reduced, but it isn’t necessarily a negative one. A property lingering on the market for a long-time may cause alarm bells to ring if the price isn’t the only issue. However, the figures show that on average, just 20% of properties reduced by 15% or more are due to a slow sale having been listed for 16 months or longer, Short said.
He said, more often than not, a mouth-watering reduction in price is due to seller circumstance and the need to move quickly and so securing one of these properties can mean a big win for buyers.
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