New figures collated by Zoopla, which monitors the housing market, show that 40 per cent of people selling their home are being forced to reduce their asking price.
The average price reduction has risen by £3500 this year and currently stands at £20,000, the highest level since 2008. This represents a total discount of almost £3 billion off initial asking prices across the country.
Even London’s resilient property market has seen around a third of asking prices reduced, although the majority of worst hit areas are in the North of the country. Nick Leeming, spokesman for Zoopla said that the problem may get worse before there is any improvement:
“With the current economic uncertainty and difficulty buyers face in seeking funding it is no wonder that sellers have to encourage sales by reducing prices. With the latest economic forecasts still painting a bleak picture, sellers may have to reduce their expectations further if they are serious about making a move.”
Glasgow currently has the highest average reduction of 9.05 per cent, or £12,881. In Sunderland, Stockport, Wigan and Chesterfield more than half of the properties on the market have been reduced from their original asking price. Housing in Croydon, Swindon, Chelmsford and Bedford has shown the most resilience to this trend with around 5 per cent of all properties being reduced in price..