House sellers are shaving just over £14,000 off their original asking prices typically to achieve a sale, according to a property website.
Zoopla analysed agreed sales, looking at the differences between original asking prices and eventual selling prices. Sales where discounts had not been made were also included.
It found that, on average, homes had been discounted by 4.5 per cent, or £14,100. The discounts-to-asking price reflect the market adjusting to the reduction in buying power, as higher mortgage rates affect affordability, according to the website.
More than four in 10 (41 per cent) homes currently listed for sale on Zoopla have had their asking prices reduced to attract buyers, the website said. Current market conditions are more aligned with pre-pandemic years, according to Zoopla.
The average estate agent office has 24 homes for sale compared with 15 a year ago, creating more choice for home buyers who have more room to negotiate on price, it added. Zoopla said it expects a “soft reset” in prices to continue over the coming months.
Richard Donnell, executive director at Zoopla said: “Greater realism on the part of sellers is supporting housing market activity in the face of higher borrowing costs. Many homeowners are sitting on sizeable house price gains made over recent years and have more room to be flexible accepting offers below the asking price.
“Discounts to asking price have widened and while four to five per cent discounts are manageable, if these were to widen further then this would point to a greater likelihood of larger house price falls. We believe the market remains on track for a soft landing in 2023, with modest price falls of up to five per cent and one million housing sales.”
The firm used mortgage applications data supplied to Hometrack, which is part of Zoopla, where there was an agreed price and an asking price available, to make its discount calculations. This means the findings represent a sample of the market, rather than the whole market.
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While some sellers are shaving money off their asking prices, separate research from Halifax found house prices have already typically made significant gains during the pandemic. UK house prices increased by 20.4 per cent, or £48,620, on average between January 2020 and December 2022, Halifax said.
In the three previous years – January 2017 to December 2019 – prices increased at 7.8 per cent, or £17,158 on average. Between January 2020 and December 2022, the average price of a flat increased by 13.3 per cent or £19,028, Halifax said.
The average price of a terraced home rose by 21.1 per cent or £38,743. Amid the “race for space” seen during the pandemic, a typical semi-detached home added 23.1 per cent or £55,361 to its value, and an average detached home added 25.9 per cent or £93,345.
Kim Kinnaird, mortgages director at Halifax, said: “The pandemic transformed the shape of the UK property market, and while some of those effects have faded over time, it’s important we don’t lose sight of the huge step change seen in average house prices. Heightened demand created a much higher entry point for bigger properties right across the country, and that impact is still being felt today by both buyers and sellers, despite the market starting to slow overall.
“Taking detached houses as an example, average prices remain some 25 per cent higher than at the start of 2020. Even if those values were to fall by 10 per cent, they would still be around £50,000 more expensive than before the pandemic.”
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