Property asking prices are being slashed across the country, providing investors with bargains for investment in certain areas of the UK.
New research from property website Zoopla found that 31.3 per cent of properties in Britain’s major towns and cities have seen asking price reductions, with the proportion as large as 40 per cent in eight of the 100 towns.
Investors should head north if looking for a bargain, with 17 out of the top 20 places with the largest price reductions in the North of England or Scotland. Stockton on Tees in County Durham saw 40 per cent of properties in the area drop in price. In Aberdeen 46 per cent have seen a reduction, whilst Salford saw 12.3 per cent of properties slashed in price.
Oxford is the sole southern city featured in the top 20, with 36.8 per cent of properties down in price from when they were first put on the market.
In terms of Britain’s major cities, Manchester saw three in 10 properties reduced from their asking price, whilst London and Birmingham saw 27.6 and 19 per cent fall in price respectively.
Chief executive of HouseSimple.com, Alex Gosling, attributed the price drops to buyers caution and uncertainty. He explained: ‘Price reductions can indicate that there are too many sellers and not enough buyers, but actually there has been a lack of stock coming onto the market and plenty of buyers looking. That would suggest that sellers are in the driving seat and wouldn’t need to drop their asking price to secure an offer. But with all the economic uncertainty, particularly around Brexit, buyers are being more cautious about purchasing, spending more time viewing multiple properties before making a decision.’
For those looking to offload a property of their own, he advised: ‘If sellers are committed to selling, then cutting the price is likely to attract more buyers, and particularly those buyers who have expressed an interest but are sitting on the fence. For anyone selling a property, there needs to be a lowest price you’re willing to take so that you are prepared to negotiate if a strong buyer – someone with finance in place who can move quickly to exchange – makes an offer. Sometimes holding out for an offer that might be a few thousand pounds more, could result in your property sitting on the market for months.’