£19,500 House Discount Available in Two English Regions

The UK housing market is experiencing a resurgence of confidence, as evidenced by the diminishing discounts sellers are giving to buyers. According to data from property website Zoopla, house sellers are typically reducing their original asking price by £10,000 in order to secure a sale. This figure represents an average discount of 3.9 per cent – a significant improvement on the average discount of £14,250 or 4.5% recorded in November 2023. 

Richard Donnell, executive director at Zoopla revealed that rising wages and falling mortgage rates have bolstered consumer confidence which has subsequently led to increased activity within the housing market over Q1 of 2024. 

However, while house prices are declining at a slower pace than previously observed, it remains very much a buyer’s market with an array of properties available for selection. Donnell cautioned against any belief that house prices were set for rapid inflation but did acknowledge growing interest among potential buyers. 

In light of this upturn in activity and interest levels among buyers, Donnell advised sellers to maintain realistic expectations when setting initial asking prices if they wish to capitalise on these improving conditions and achieve successful sales during 2024. 

Despite overall improvements across the country there still exist regional disparities particularly within London and South-East regions where larger discounts remain prevalent - averaging around £19,500 or equating roughly to about 4.3%, according to Zoopla's report. 

Marc von Grundherrn Director at Benham & Reeves estate agents said: "Previously finding a serious buyer was challenging enough let alone coming into agreement over price." He noted though that current circumstances have improved significantly enabling easier connections between willing buyers and sellers eager for movement within the marketplace. 

Grundherr went on to explain how higher mortgage rates continue restricting purchasing power among prospective homeowners resulting in necessary compromise on seller's side regarding pricing strategy.  

Nonetheless he added optimistically: "the gap between purchasing power price point and seller asking price expectation has narrowed, and sellers are more than willing to oblige in order to make their move." 

Tom Bill, head of UK residential research at Knight Frank, however added a note of caution. While demand within the UK housing market has improved it hasn't yet fully rebounded. As supply continues growing pressure on prices will increase potentially leading to further reductions. 

Additionally he noted that many homeowners who secured sub-2% two-year mortgages from early 2022 would soon be facing increased financial pressures as these deals come to an end. 

In summary, while there is renewed optimism within the housing market due primarily to rising wages and falling mortgage rates prospective sellers should remain cognizant of regional disparities and potential economic pressures which could impact buyer's ability or willingness to meet initial asking prices.