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Desperate homeowners slash selling prices as market slows

In spite of the fact that year on year house prices have risen by 10.2% since July 2013, home owners desperate to sell their properties are slashing the selling price of their homes, in what can only be described as a giant summer sale!

In the first two weeks of August the average price of homes has dropped by an average of 2.9% according to the records held by property website Rightmove. The reasons behind the falls are attributed to the homeowners attempting to cash in on the reported increases in value of property and there are now 8% more houses on the market than at August of last year. However, the slow moving market is probably down to the gloomy predictions of higher interest rates and to the change in the government’s stance on cheap mortgages.

Vendors, who have been trying to cash in on record high values, are now discounting to attract buyers who have been deterred by gloomy predictions of interest rate rises and the eradication of cheap mortgages. The North of England prices have held, but other all regions have witnessed falls in the asking price, London has seen a drop of 5.9%. The prices in the capital have as we know been over inflated for some time, but prospective buyers are simply walking away and are not prepared to pay the inflated rate, which is up on August last year by a massive 10% to an average of £552,783.

The falls in the asking price for houses could mean that British homeowners could be in for a rude awakening as they have, over many decades, been used to rising property prices. Already signs are evident that property prices in London will only increase by around 1.9% over the next year.

Picture: Diana Parkhouse

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