Homeowners are cutting the sale price of their houses in a bid to sell them quicker it has been revealed.
In the UK four out of ten sellers cut the asking price of their houses last month with an average price cut of £19,600. According to property website Zoopla.co.uk this is the highest drop on record.
The reductions that are being made total to around £2.5 billion which have been knocked off asking prices over the past few weeks hoping it will encourage people into buying homes.
At the top of the list is Glasgow which has seen homeowners cut house prices by 9% and the smallest is Chelmsford with just a 6% cut.
With the housing market changing from month to month with more people who currently rent are continuing to rent for the time being as they are not sure what is happening with the economy and are nervous about making major moves into the housing market. There has been an increase in tenancy periods over recent years and this is set to continue in the future.
This information comes after it was recently reported that the cost of renting is expected to rise in 2012. 61% of people in the UK think if people rent privately house prices will increase over the next twelve months whereas 3% said they thought prices will fall.
Malcolm Harrison, spokesman for the Tenancy Deposit Scheme, said: “If you go back five years then all of the surveys used to show that the average length of tenancy was around about 14 or 15 months.
“Fairly quickly after that they were increasing up to two years and I would not be at all surprised if they have increased quite a lot since then.”
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By Amanda Bainbridge