Breaking News
Translate

UK housing market is still sluggish

WEAKER than expected demand is leading a number of residential property sellers in the UK to reduce their asking prices, a new research has found.

Property website Zoopla.co.uk has revealed that 37.4 per cent of all homes currently on the market have been reduced at least once.

According to the website, vendors are taking off an average of 6.9 percent of the original asking price in an attempt to coax individuals into buying property in the UK.

According to the firm, the news is a representation of sellers becoming more realistic in terms of expectations and is likely to be viewed as a welcome sign by hard-up buyers.

The trend is most evident at the top end of the market, with the average discount for prime properties worth over £1 million climbing to ten per cent off the original asking price, up from eight per cent in November.

Nicholas Leeming, commercial director of Zoopla.co.uk, notes that “As a result of weaker than expected demand in the last half of last year, sellers have progressively reduced asking prices to more realistic levels in order to achieve sales.”

In its latest report on the UK real estate market, the Royal Institution of Chartered Surveyors (RICS) stated that lack of demand and a low level of supply meant that the UK residential property market remained “sluggish” in January.

According to the highest surveying body in the world, the demand for homes fell by seven per cent in January compared to the previous month.

However, despite the slow market, many surveyors remain optimistic about the future, with the sales expectations net balance edging up from +8 to +10.

“Uncertainty over the prospects for employment, alongside the shortage of mortgage finance particularly for first time buyers continues to weigh heavily on transactions levels,” RICS spokesperson, Ian Perry said.

Meanwhile, a new research conducted by Halifax has found that the average cost of a house in the UK has climbed by 91 percent over the past decade.


Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.