One Third of House Prices Have Been Significantly Reduced

For potential first-time buyers, purchasing a house can seem daunting. The increase of property prices has meant that owning a house appears to be an impossible task. Schemes such as shared ownership are in place to help, but renting usually appears to be the most plausible option for first time buyers.

However, there may be some positive news for first time buyers. More than one in three homes for sale have had their prices greatly reduced since they were originally on the market. Overall, it is a slight increase of reduced prices since the summer of this year. It is particularly exciting for first time buyers because they now have a better chance of owning their own homes rather than renting.

According to the property website Zoopla, 35.3% of homes for sale had their asking prices reduced since November. Overall, the average discount has increased to £25,562 which is highly significant. The rapid decrease of property asking prices is certainly indicative of the struggling property market in London and the South East. Housing prices are extremely high in these areas because the largest reductions occurred here. Commuter belt towns took four out of the top five spots, which included: Camberley, Kingston-Upon-Thames Watford and Mitcham. This will be very beneficial for property owners who work in the city but can’t afford to live in a central location. Obtaining a property nearby and then commuting appears to be the next best option and it is now much more possible with these significant price reductions.

Overall, the discount on initial property asking prices is approximately £740 more than July 2017. Due to high house prices, the most expensive areas of London such as Kensington and Chelsea have seen more than £100,000 reduction in asking prices. On average, this equates to a discount of about 7.5%.

Although house prices across the UK haven’t had the same discounts in asking prices, the reductions primarily in London are extremely significant. It demonstrates that property companies are aware of the worrying state of London’s housing market. The ever-increasing house prices had meant that it is more difficult to afford properties in London and the South East. Hopefully, this change can influence the rest of the UK and ultimately benefit first time buyers.