As the UK housing market continues its rebound, a recent analysis by Zoopla, a leading property website, has revealed that one in five home sellers are being forced to reduce their asking prices by 5% or more. Despite the market’s recovery, with a 23% increase in sales agreed and a 20% rise in buyer inquiries compared to the same period last year, buyers remain price-sensitive.
According to Zoopla’s data, homes that have their asking prices reduced take an average of 73 days to sell, while those that are competitively priced from the outset spend just 28 days on the market. This stark difference highlights the importance of setting the right price from the beginning.
Richard Donnell, executive director of research at Zoopla, emphasised that buyers have less purchasing power than they did two or three years ago, meaning sellers must be realistic when setting their asking prices. The analysis also revealed a north-south divide in the market, with prices in northern towns and cities generally higher than a year ago, while prices in the east and southeast of England, typically popular with London commuters, have experienced slight declines.
Despite these challenges, momentum is building in the UK housing market. Zoopla estimates that 1.1 million flats and houses will be bought and sold this year, a significant increase from the 1 million transactions in 2023, although still below the long-term average of 1.2 million. Prices are expected to rise by 2.5% this year.
The improving outlook aligns with recent surveys of estate agents and trading updates from major housebuilders, all indicating a resurgence in buyer interest. Donnell attributes this uptick to improving affordability and consumer confidence, which is encouraging those who had delayed their plans over the past couple of years to reconsider moving.
As a result of increased buyer activity, estate agents now have more homes to sell than at any point since 2017, with each branch having an average of 33 active listings – double the number they had at the peak of the pandemic property boom. Donnell anticipates that this extra stock will help to keep price rises in check, providing a more balanced market for both buyers and sellers.
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