14th
Apr 2023
A leading estate agency states that if landlords and home owners are hoping to sell their properties this spring then they must ‘wise up’ and face the reality of lower asking prices.
The agency’s analysis of prime markets in and outside the capital shows that average prime property prices outside London fell by 1.3 per cent in Q4 last year and dropped again by a further 1.0 per cent over the first three months this year….the first time since September 2019.
A researcher for the agency, says: “Prices are beginning to stabilise across the prime regional market, following almost three years of strong growth. While best in class properties are still commanding competition, and buyers are still prepared to pay more for the ‘right’ home, price sensitivity is creeping into the wider market.
“Even more so than in London, the gap between buyer and seller expectations is widening. Over the past three months sellers have become less likely to reduce their price expectations, while the vast majority (59 per cent) of agents suggested that buyer budgets have reduced by more than five per cent.
“Realistic pricing is expected to play an increasingly critical role over the next couple of months, and will be vital for sellers.”
The agents also held a survey with clients which found for the first time since the start of Covid that market uncertainty and falling prices are now more of an issue for buyers and sellers, rather than the lack of housing stock.
Price growth in London prime markets which according to the agency represents the top 5 to 10 per cent of properties by value, remained constant in Q1 this year with a rather inconsequential rise of 0.1 per cent after last year’s fall in Q4.
Although markets began to steady after the ill-fated Mini-Budget dip, the gap between seller and buyer ‘hopes’ on price has increased over this period, with 53 per cent of agents stating that buyers now expect to pay lower prices by at least 5 per cent, whereas only 13 per cent believe sellers are ‘willing’ to lower their asking price by 5 per cent.
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