Property industry reacts to Zoopla House Price Index – London Wallet

Residential property purchasers are in the strongest negotiating position for five years with an average £18,000 knocked off asking prices to land a deal amid a weak housing market, research from Zoopla has revealed.

The average discount on a house purchase has reached its highest since 2018 in a further sign that it remains a “buyer’s market” despite the long-term supply-demand imbalance in the market.

According to Zoopla, the average discount to asking price for completed sales grew to 5.5% in the first half of November, up from 3.4% across the first half of 2023. The discount was even greater in London and the south-east of England, at 6.1%, which equates to £25,000.

Industry reactions: 

Guy Gittins, CEO of Foxtons, said: “London is consistently the highest value UK property market, so it is less susceptible to the market fluctuations seen elsewhere in the UK. This means London’s homeowners are well-positioned to capitalise on the upcoming bump we see annually from Boxing Day and into the new year.

“In contrast to the rest of the country, London has not experienced a sweeping decline in house prices, however, the market does experience a higher volume of price adjustments. A good agent understands where the market is trading and has the data to find the best price that will still stimulate activity. Going into the new year sales surge, selecting the right agent that utilises the market information well will be critical to homeowner’s achieving their property goals.”

Tom Bill, head of UK residential research at Knight Frank, commented: “Sentiment among buyers and sellers has been dented repeatedly over the last 18 months, with the mini-Budget and stubbornly-high inflation keeping upwards pressure on mortgage rates. However, the outlook has begun to improve as the Bank of England’s job appears closer to completion and inflation falls below 5%. The story of this slowdown hasn’t been falling prices but low sales volumes as buyers and sellers both hesitated. As confidence and activity levels rise, the market will re-price and a spring bounce in 2024 becomes more likely after a largely non-existent autumn market this year.”

Adam Feather of Robert Anthony Estate Agents said: “There was always going to be a house price correction and it really is a buyers’ market now.

Nigel Bishop of buying agency Recoco Property Search cautioned: “Many sellers are still basing their asking price on the influx of buyer demand seen during the pandemic but fail to acknowledge that the market has begun rebalancing since. It is very much a buyer’s market right now and house hunters are more determined to negotiate the asking price or continue their search otherwise.

“That being said, the volume of any price reduction is subject to the property location and overall value. Properties that are located in sought-after areas tend to hold their value with the majority of sellers insisting on achieving their asking price.”

Buyer’s market growing stronger as average seller discounts hit £18,000 – Zoopla