According to the latest housing market data published by Rightmove, 37% of sellers with properties already on the market have reduced their asking price since first listing, the highest rate in five years for this time of year.
Sellers are reducing asking prices by 0.8% on average, but Rightmove suggests that these reductions may still be too optimistic and many sellers will be forced to continue lowering their asking price in order to complete the sale.
Miles Shipside, Rightmove director, said; “Given that the market has been price-sensitive for a while and a five-year high proportion of sellers are slashing their prices, some sellers and their agents are over-pricing. These sellers may well be asking themselves if they could have saved some time and stress by pricing a lot more conservatively than an average of more than six percent ahead of what the market subsequently proved it could sustain.
“The danger of going too high at the outset is that you jeopardise that vital initial three week period, and may have to start on a series of price reductions while potential buyers watch and assume that no-one is buying your property because something is wrong with it other than the price.”
The rise in the number of house sellers cutting their asking price is going to add to worries for homeowners struggling with negative equity and other property debt problems.
The news follows the decision by the Bank of England’s Monetary Policy Committee to raise interest rates from 0.25% to 0.5%, putting up monthly repayments for many borrowers, and data from the Royal Institute of Chartered Surveyors showing that house prices are falling in areas across the country.
We can help.
Falling house prices will leave many homeowners with outstanding mortgage debt worried about negative equity.
Negative equity describes a situation where the value of a property is less than the amount still owed on the mortgage on that property. This can make it impossible for people to sell their property if they need to move on, or if their repayments become unaffordable, as the sale of the house will not raise enough to pay off the remaining debt, leaving the borrower still owing the shortfall.
At Negative Equity UK, we offer bespoke solutions to help our clients deal with their property debt.
If you are struggling with property debt you can't afford or you're trapped in a home in negative equity, take a look at our reviews and contact us on 0161 631 2727 or online at negativeequityuk.com to arrange an initial free, no obligation consultation.