Gap grows wider between asking and selling prices
The gap between average asking prices to average achieved prices has increased in the first quarter of this year across nearly all 16 UK cities, compared to 2018, said Zoopla.
The property portal’s Cities House Price Index found that only two cities, Glasgow and Edinburgh, registered average sale prices as higher than average asking prices. Typically, properties in Edinburgh sell for 6.3% more than their listing price, while stock in Glasgow shifts for 5.2% above asking price.
Mind the gap
The current UK average for the gap between asking price to selling price is 3.9%, up from 3.3% in 2018.
Six cities registered average discounts above the current national average, with Aberdeen registering the highest discounts at over 8%. This is consistent with the decrease in demand for housing in the city due to the collapse in the oil price since 2015.
Newcastle and Liverpool also registered higher gaps than the national average.
In London, which has led the slowdown in house prices, the average differential between asking price and selling price has increased from 4.8% in 2018 to 5.7% today.
Richard Donnell of Zoopla, said: “Sellers are having to accept slightly higher discounts to the asking price in order to achieve a sale. This is a natural response to weaker market conditions and buyers are starting to negotiate harder on price. The increase between asking and selling price is off a low base. Correctly priced homes continue to sell within a reasonable period and setting the asking price at the right level remains a key decision to agree with your agent.
“Market conditions remain weak in London and the level of discounting continues to increase. We expect the price adjustment in London to continue although we do expect sales volumes to start to tick upwards.”