The proportion of residential properties in the UK on the market for sale with a reduced asking price has fallen to its lowest level in four years, according to property website Zoopla.co.uk.
Its latest research shows that of all homes currently available for sale, just 27 per cent have had their asking price reduced from their original level, down from 31 per cent three months ago and significantly below 2011’s level of 40 per cent.
The size of the average price reduction has also declined marginally over the last three months with sellers now offering average discounts of 6.25 per cent off the original asking price (£20,782), down from 6.45 per cent (£21,451) in November.
Wakefield possesses the highest list of places with the highest proportion of price-reduced properties. Some 41.5 per cent of properties for sale there have been discounted from their original level. This was followed by Barnsley and Rotherham, with 38.1 and 37.2 per cent respectively registering the next highest levels.
Newcastle upon Tyne is where the biggest price discounts can be found at an average asking price reduction of 8.9 per cent.
Unsurprisingly, given the booming state of the market and the widening supply-demand imbalance, London has the smallest share of discounted homes on the market at 14.8 per cent, followed by Edinburgh (19.7 per cent) and Coventry (23.5 per cent).
Lawrence Hall (left) of Zoopla said, “The Government’s Help to Buy scheme, increased availability of mortgages and confidence in the economy have all helped to invigorate the property market at the start of 2014. This has driven a rise in demand among buyers and helped reduce the pressure being felt by sellers to discount their properties, particularly in London, where competition for quality property remains fierce.
“While this is good news for sellers, buyers need to see more stock come onto the market over the coming months otherwise the recent trend of rising prices is likely to continue as spring takes hold and more buyers decide to search for property and create further competition.”
Top five areas with highest proportion of asking price reductions
1 Wakefield 41.5 per cent
2 Barnsley 38.1 per cent
3 Rotherham 37.2 per cent
4 Wigan 36.9% 7.7 per cent
5 Preston 36.9% 7.1 per cent
Top five areas with biggest asking price reductions
1 Newcastle upon Tyne 8.9 per cent
2 London 8.3 per cent
3 Bolton 8.3 per cent
4 Blackpool 8.2 per cent
5 Doncaster 7.9 per cent
Top five areas with lowest proportion of asking price reductions
1 London 14.8 per cent
2 Edinburgh 19.7 per cent
3 Coventry 23.5 per cent
4 York 23.7 per cent
5 Bournemouth 23.8 per cent
Top five areas with smallest asking price reductions
1 Warrington 6 per cent
2 Peterborough 6 per cent
3 Plymouth 6 per cent
4 Southampton 6.2 per cent
5 Lincoln 6.2 per cent