The number of homes for sale on the market has reached a 6-year high

UK homebuyers have the strongest position in today's property market, forcing sellers flocking to the market in increasing numbers to lower prices to secure a sale.

The difference between the asking prices and the actual values recorded at sale increased by 5.5% during the first half of November, which is the highest level in 5 years, while one in every 4 deals includes a price reduction of more than 10%, according to the real estate portal (Zoopla).

Real estate agencies in the United Kingdom

The number of homes for sale at each UK estate agency branch rose by more than a third year-on-year to 31, the highest level for six years.

“There is evidence of sellers being more realistic when it comes to pricing homes, with a growing acceptance that prices that would have been asked a year ago are no longer largely appropriate given current market conditions,” said Richard Donnell, CEO of Zoopla.

Households in the UK are facing increasing pressures from monetary tightening and the cost of living crisis which is causing many to abandon the idea of buying property. With average mortgage interest rates continuing to hover near 6%, the number of agreed-upon home sales deals has reached its lowest levels in four years, according to Zoopla.

Affordable homes

Buyers in the south of England get the best price cuts, with the average agreed reduction of 6.1% off the advertised price in London and the South East. Furthermore, home sales in London are increasing as more employees return to working from the office, with sales there increasing more than in any other part of the UK over the past two months.

Zoopla said that the repricing of homes will continue until 2024, amid rising mortgage costs, which means prices must be lowered to make repayments more affordable. In the report, it is likely that demand will increase over the next year for homes that are realistically priced by their owners, especially in light of the increase in supply.

Epidemic outbreak

However, the decline in house values remains slight so far, with average house prices in the UK falling by 1.2% year-on-year, according to Zoopla.

But rising profits are slowly improving purchasing power, boosting demand for homes as the end of 2024 approaches, especially if the Bank of England starts cutting interest rates.

“These are the best conditions for homebuyers in many years, with so many homes to choose from and sellers willing to negotiate price to close the sale,” Zoopla's Donnell said.

  He added: "Sellers have a lot of room to negotiate, especially with average house prices remaining 41,350 pounds ($52,221) higher than they were at the beginning of the pandemic".