Almost 5,600 UK homeowners have reduced their asking prices within a month of listing, as the housing market slows and buyers adopt a “wait-and-see” stance ahead of the Autumn Budget.
Analysis by Springbok Properties, a national cash buying company, found that 6.2% of homes listed for sale in the past 30 days have already had their prices cut – a sign that vendors are struggling to attract offers amid weaker demand and higher borrowing costs.
In England, 5,258 sellers lowered their prices within the first month on the market, accounting for 6.4% of new listings.
In Scotland and Wales, the share of early price reductions was lower, at 3.9% and 4.1% respectively.
PRICE CUTS
At a city level, Bristol recorded the highest proportion of quick price cuts, with 9.8 per cent of new listings discounted within 30 days. Bradford followed at 8.2%, while London saw the highest total number of reductions – 1,225 homes, equivalent to 7.1% of its newly listed stock.
Other regional centres such as Leicester (6.4%), Birmingham (6.3%) and Brighton (6.2%) also recorded above-average levels of early price discounting. Liverpool (2.9%) and Edinburgh (3.3%) were among the least affected.
MARKET STAGNATION
The findings highlight growing signs of stagnation in the market as sellers adjust to more subdued buyer activity following two years of rising interest rates.
The average 2-year fixed mortgage rate remains above 5%, while the prospect of fiscal tightening in next month’s Budget has left many buyers delaying decisions.
Shepherd Ncube, Chief Executive of Springbok Properties, says: “Sellers are finding it increasingly difficult to secure a sale as the market grinds to a halt ahead of the Budget. Price reductions are a common tactic to attract hesitant buyers, but in many cases they are not proving effective in the current climate.”
Market analysts expect trading volumes to remain muted until inflation eases and the Bank of England signals a clearer path towards lower interest rates.
