Asking price cuts hit 15-year high as housing market sends mixed signals

Mixed picture across the country

The property market’s usual autumn pick-up in activity has failed to materialise evenly across the UK, according to estate agents surveyed by Which?. In Kent, agent Miles & Barr reported buyer activity higher than the same time last year, and DJ Alexander Scotland said demand remained high with rising sales volumes, particularly in the central belt.

Elsewhere the picture is weaker. An agent in the north of England reported buyer numbers down by roughly 10% compared with last year, while Prospect estate agents in the Thames Valley recorded a 16% annual fall in new buyer registrations. An agent in Pembrokeshire said buyers were being more selective, with little sign of an autumn bounce.

Asking price cuts at highest level in 15 years

Nationally, the number of homes on the market is at its highest point for this time of year since 2014, according to Rightmove, while new buyer enquiries to agents are down 9% annually.

That combination of high supply and softer demand has pushed sellers into cutting prices. Rightmove data shared with the BBC shows asking prices were reduced on 3,000 properties a day in September, the highest level in 15 years. The average cut was almost 7%, equivalent to roughly £21,000 off the average property.

Separate analysis from property data firm TwentyCi found that 38.5% of concluded listings this year, where contracts were exchanged, had required at least one price reduction. Price cuts were more common across much of the south than in the north and Midlands.

Pricing right matters for speed of sale

Rightmove’s figures also illustrate the cost of getting the asking price wrong. Homes listed at one price and not reduced took an average of 39 days to find a buyer, compared with 119 days for homes where the price was later cut.

What it means for buyers

For buyers, mortgage rates have risen significantly since March, meaning monthly repayments are likely to be at least £100 more than for someone who bought in January. However, with large numbers of properties on the market, buyers are in a stronger position to negotiate on price. First-time buyers and those without a chain are able to move faster and may have more room to negotiate further, Which? said.

What happens next

Whether mortgage rates ease depends partly on wider economic conditions. Which? noted that if energy prices and the international outlook stabilise, mortgage rates could begin to drift down, potentially drawing more buyers back into the market. Conversely, further escalation in the Middle East could push energy prices and mortgage rates back up.

With national figures masking sharp regional differences, in Scotland, demand rising; in parts of England, buyer numbers falling, Which? said anyone buying or selling should look closely at activity in their own local area rather than relying on national trends alone.