The gap between the original asking price of the nation’s home sellers and the sold price they are achieving in current market conditions has narrowed since the Autumn Budget, now sitting at a difference of 17.4% versus 20% back in September of last year.
Latest property market analysis by eXp UK shows that due to an increase in the average price paid by the nation’s homebuyers, there has also been a marginal reduction in the asking price expectations of the nation’s sellers, suggesting the two are meeting in the middle in order to get a sale over the line.
The South West has seen the close by the greatest margin, with the average sold price currently 15.9% below the average asking price, with this gap reducing from 21.1% prior to the Autumn Budget.
The South East (-4.3%) and Wales (-3.1%) have also seen the gap between asking price and sold price narrow by the greatest extent since Labour’s first budget.
LONDON NARROWEST GAP
London is home to the narrowest gap, where the average sold price is currently just 5.6% below the average asking price.
At 29.6%, the North East is home to the largest market gap, whilst Scotland is the only place in Britain to have seen this gap widen, not sitting at 22.6%, up from 22.4% prior to the Autumn Budget.
REALITY CHECK
Adam Day, Head of eXp UK, says: “Since Labour delivered its first big budget, the market gap has started to narrow between the asking price expectations of the nation’s sellers and the reality of what buyers are willing to pay.
“This has come largely as a result of a higher sold price achieved, as well as a lower entry point with respect to asking, suggesting that both buyers and sellers have been more willing to adjust their expectations in order to get a deal over the line.”
STAMP DUTY
He adds: “This has no doubt been driven, in part, by the government’s decision not to extend current stamp duty relief thresholds beyond March of this year, and it’s fair to say they’ve done little else to try and stimulate the market to offset the higher costs that buyers face as of 1st April.
“The good news is that the improvements in market health being seen should remain for the long-term and so we should continue to see sellers achieving a good price for their property long beyond April’s stamp duty deadline.”
