Home Sellers Cutting Asking Prices on 3,000 Properties Daily, Says Rightmove
British Broadcasting Corporation
Kevin Peachey Cost of living correspondent
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Home sellers in Britain are cutting asking prices on more than 3,000 properties per day on average during September, according to exclusive figures from Rightmove shared with the BBC. This is the highest monthly total in 15 years.
The property website attributes this trend to a surplus of homes on the market and some sellers setting unrealistic expectations. The proportion of listed homes with price cuts peaked in 2023 and has remained high.
Colleen Babcock of Rightmove notes that "once a home has been on the market for a while and then has a price reduction, some buyers start asking questions, even when there is nothing wrong with the property."
Rightmove data reveals an average price reduction of nearly 7%, equivalent to around £21,000 from a typical home value. Homes that underwent price cuts typically took 119 days to sell, compared to 39 days for those listed at their original price.
The proportion of listed homes with price reductions stood at 34% in September, slightly below the recent peak of 36% in September 2023.
Rival property portal Zoopla agrees that buyers are in the driver's seat, being more cautious and selective due to rising mortgage rates. With mortgage rates at a three-year high, buyers must keep monthly payments affordable.
While the number of homes for sale increased by 5% in September compared to a year earlier, the number of agreed sales fell by 9% during the same period, according to Zoopla's figures.
September is often the month with the most price cuts as sellers aim to complete sales by the end of the year. Zoopla's data shows that a quarter of newly listed homes in September had previously been on the market for over a year, with six in ten returning at a lower asking price.
These homes take longer to sell, with properties needing price reductions being half as likely to find a buyer within the typical three-month timeframe, according to Richard Donnell, executive director of research at Rightmove.
Sellers reaching out to the BBC's Your Voice have highlighted the challenges posed by the current market conditions.