UK property owners looking to sell up have slashed their asking prices by an average of £4,345 in the last month, according to a survey published on Monday. Other statistics from the report show this is a fall of 1.2 per cent in the last month, bringing the average property asking price to £239,564.
The figures from Right Move are included in the July edition of the firm’s house price index. It also says unsold stock has hit a new record level in spite of falling amounts of property coming on to the market.
Right Move commercial director Miles Shipside said:
“Sellers are finally recognising that they need to undercut their rivals from the outset, rather than testing the market and dropping prices later.
“It could be a lot better outcome to price aggressively and sell now, rather than accept a bigger reduction later as prices continue to fall.”
Right move said banks would have to loosen lending practises before sales started to go up again and added prices were also in danger of continuing to fall. The Financial Times recently reported homeowners on the continent have high hopes the value of the their homes will rise over the next five years even if the next 12 months see prices fall or hold firm.
The paper also said the British were revealed as the most gloomy when it came to the short-term, with 42 per cent expecting house prices to fall over the next 12 months.
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