Latest research has revealed that properties on the market have had their asking price cut for the ninth month running.
From the research found by zoopla.co.uk 37% of properties for sale in the UK have seen the original asking price cut at least once since they were first put on the market. This was a reduction of at least £19,000 from the original asking price.
The Region that has been hit the hardest by the cuts is Newcastle-upon-Tyne with the biggest average percentage of 9.6% (£18,888). Liverpool was the second region to be hit with a 9.1% cut (£13,643). Meanwhile Plymouth and Devon were the regions who have had the smallest reductions at 5.8% (£10,761).
However Wakefield in Yorkshire had the highest proportion of sales by 51% which have been reduced in price. Office for National Statistics also found that the North East area of the UK was the only region to see a year-on-year drop in house prices with 1.3%.
Reasoning behind the property market being faced by price cuts is the time of year with summer holidays and the Olympics. Experts believe that once these events are over people will start to focus on buying properties again which will have an effect on the housing market.
Nigel Lewis, property spokesman for Zoopla.co.uk, commented: “Activity levels tend to fall over the summer months as holidays delay the buying process. With the recent bad weather and the extended jubilee bank holiday, the rise in proportion of price reductions is a signal that sellers have been doing everything they can to try and tempt those buyers still in the market.
“Once the distractions of summer holidays and the Olympics are gone buyers will once again be able to focus attention on their property search, and this should bolster confidence among sellers.”
© Copyright Autonet Insurance
By Amanda Bainbridge