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Sales agreed below asking prices

Journalist: Jake Carter, Mortgage Introducer

ended 11. April 2023

According to RICs, for house prices up to £500,000, 60% are being agreed below asking price, and for homes between £500,000 and £1 million, the figure rises to 70%. 

Why do you believe so many properties are being sold below asking prices?

What does this mean for the market?

What are your expectations for agreed sales prices over 2023?

3 responses from the Newspage community

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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
This is clearly an indication house prices are falling and although buyers arent being realistic with asking prices, they are willing to offer discounts. Prices still have further to fall, and even when the Bank starts cutting rates in the summer, it won't stop the crash. House prices will bottom out around the winter, at least 10% below where they are now.
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Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
The RICS data chimes with what I am seeing with the purchase clients I am dealing with, most are agreeing sale prices for less than the price the property was being marketed at. This change is more a return to normal, rather than a shift in the way the property market generally works, for the last couple of years we've had a market overheating with over-asking price offers very much the norm. As more people are recalled to the office, the end of support schemes such as the help-to-buy equity loan and the general downturn in the economy, the competition for houses has reduced and so things are looking a lot more like the pre-pandemic housing market. Which for many, is no bad thing.
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Graham Cox
Director at Bridging Hub
Prices are being agreed below asking for no other reason than borrowers are unable to borrow as much as they once could. Unless you're lucky enough to attract a cash buyer, house prices are determined by the affordability of credit.

I expect the rate of house price falls to accelerate over the next 3 months as more vendors market their properties, including some distressed sellers unfortunately. I think we'll see monthly falls of 1-2% quite soon.