During the first quarter of the year, the gap between the asking price expectations of UK homesellers and the price paid by the nation’s buyers fell to its lowest level on record, new research shows.
London estate agency Benham and Reeves has released its latest Market Index Review based based on data from the top four existing indices.
It looks at where the average house price sits overall when taking into account mortgage approved house prices from Halifax and Nationwide, seller expectations via the Rightmove House Price Index, and sold prices from the UK House Price Index.
It shows that the average buyer paying £277,287, homesellers were having to reduce their asking price, which stands at £348.129, by 20.3% in order to secure a sale. This is undoubtedly due to the severe lack of stock available on the market causing many buyers to offer above and beyond what they may have otherwise, simply to secure themselves a property.
Across London, the gap between the current average sold price of £524,570 and the average asking price of £653,333 dropped to 19.7% during the first quarter of 2022.
Director of Benham and Reeves, Marc von Grundherr, commented: “Sellers will always overprice when entering the market in order to leave a little room to do the dance during the negotiation stage. Although they continue to do so, they are finding that buyers are willing to come up that bit more than they previously have in order to secure a property.
“This has caused the gap between asking prices and sold prices to narrow to its lowest on record.”