HPI: Sellers having to cut prices by £14,000 average

The index also revealed that buyer demand and sales volumes (by region) are 20-50%, lower than a year ago but slightly ahead of the pre-pandemic years.

Zoopla go into big news regarding asking prices, with sellers having to accept an average 4.5% discount to their asking price in order to achieve a sale. The average discount asking price is sitting at £14,000, meaning sellers are having to forgo a third of their pandemic house price gains.

This is linked to slower sales and a steadier flow of new supply, which has boosted the stock of homes for sale by over 60% compared to last year. The average estate agent office has 24 homes for sale compared to just 15 a year ago. This creates more choice for home buyers who now have more room to negotiate on price.

Thus, sellers, supported by agents, are adjusting asking prices in the face of weaker demand. Over 40% of homes currently listed for sale on Zoopla have seen their asking prices reduced to attract price-sensitive buyers.

The index insists that the market is still on track for a soft landing, with price falls of 5% and sales figures around the 1mn mark for the year.

Richard Donnell, executive director of research, Zoopla, said: “Housing market activity has rebounded in line with pre-pandemic levels. Sellers are having to give up discounts to achieve sales, the value of which equate to a third of the price gains made over the pandemic”.