Lower prices for homeowners desperate to shift their properties in a slowing market reached its highest level in six years, according to the analysis on the company’s website zoopla.
Just over 35% of homes are sold on the website have already reduced the price in the hope of achieving a sale with great discounts on London real estate market.
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35% figure is comparable with the 29% just before the EU referendum in 2016, although below levels reached in the Wake of the financial crisis.
Sellers in the Richmond and Kingston upon Thames in South West London as a relatively safe area, among those who made the deepest decline in selling prices. The website zoopla put GPA on sellers in Kingston to £84,244.
He added that about half of all properties for sale in Kingston and other surrounding areas such as Mitcham and Camberley in Surrey has been reduced since their first listing, indicating that sellers have to significantly adjust their expectations in light of the UK out of the EU vote.
Lawrence Hall, zoopla company, said it was good news for first-time buyers trying to get onto the property ladder.
“A small increase in levels of discounting should be expected at this time of year when house-hunters are likely to delay their property search to activity in January,” said Hall. “Those who are in search of the best should consider looking in Camberley or Kingston-on-Thames in the South or the North-East is home to some of Britain’s biggest discounts.”
In the average asking price reduction across the country currently stands at £25,562, according to zoopla.
On the hotel’s website said the cities in Scotland and Northern England were more resistant to discounts. About 16% of homes in Edinburgh have been reduced in price, and then to 19% in Salford, 22% in Glasgow, and 25% in Manchester – all below average.
In London, 39% ad real estate recorded a decline in prices, compared with 37% in July.
Economists predict that several factors will negatively affect the growth of housing prices in 2018, including falling real wages and weak consumer confidence in the quality of Britain’s future outside the EU remains uncertain.
“We see that housing prices grow by a modest 2-3% in 2018,” said Howard Archer, chief economic adviser to forecasting group, the EY club. “Basics for buyers of homes is likely to remain difficult in the coming months, with the purchasing power of consumers continues to be under pressure from inflation more than growth of income. In addition, activity in the housing market is likely to be hampered by fragile consumer confidence and the willingness of companies to participate in major transactions”.
Archer added that the decision of the Bank of England in November to raise interest rates for the first time in a decade may be another factor for the decline of the housing market in the coming months.
“While the increase in interest rates was only 0.25% [0.5%], mortgage rates are still at historically very low levels, the fact that it was the first growth since 2007 may have a significant impact on the housing market, the psychology,” he said.
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