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What do falling house prices mean for sellers?

Journalist: Elizabeth Anderson, Freelancer

ended 29. January 2024

Hello, off the back of the Zoopla house price data out today I am writing an article for the Daily Mail about what falling values mean for those looking to sell now.

Why are house prices are falling in your area? And what does it mean for your property sale?'

I am looking for estate agents / mortgage brokers / surveyors / any other experts or sellers who can give an insight into which areas / properties are most likely to see a reduction - particularly those accepting an offer that is more than 10% below the asking price? (happening to 1 in 5 sellers). I'd also like to hear any anecdotes you have indicating what's going on in the local market. Areas where prices have fallen year-on-year include London, Aberdeen, Southampton, Cambridge, Bournemouth, Leicester, Bristol, Oxford

Also it looks like there are a lot of regions where house prices have increased in the past year - it would be good to know whether sellers there able to keep asking prices high or does the slow demand mean even they are having to lower expectations.  These areas include Belfast, Glasgow, Edinburgh, Liverpool, Leeds.

Just a couple of lines with initial thoughts  would be good and I'll get back to you if I want more. Thanks!

4 responses from the Newspage community

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Ranald MitchellVerified
Director at bad credit mortgage specialists Charwin Mortgages
With the distinct shift in the cost of mortgages, and the knock on effects on affordability, owning a house is more expensive than a generation of people have been accustomed to, and indeed, they are able to borrow less than before. Buyers are far more considered with mortgage costs, stiffling overall demand and sellers are reacting by accepting lower offers. It is however, a great time for first time buyers to grab a good property deal, being in a stong bargaining position.
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Richard Jennings CeMAP0
Founder & Managing Director at Richard Jennings Mortgage Services
While some regionalised areas have seen a fall in house price year on year this is not widespread across the entire UK. Couple with strong buyer demand at the beginning of 2024 I wouldn't be too concerned with a small correction of house prices. We've seen continued growth to house prices consistently for the last few years, what we appear to be seeing now is localised corrections to this. First time buyer properties in larger cities continue to demonstrate some growth.
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Akhil Mair0
Director at Our Mortgage Broker
Regionally, the homeowner and investor trends over the last 18 months show a nuanced picture, revealing pockets of fluctuation in house prices and sales activity. Our analysis unveils a fascinating trend in UK property sales and house prices. Regionally, we've noticed a tug-of-war scenario where certain areas experience a dip while others soar to new heights. Our findings suggest a complex interplay of economic factors, local dynamics, and shifting buyer preferences. Looking ahead, 2024 promises an intriguing mix of challenges and opportunities for homeowners and investors alike.
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Jonathan Gordon0
Director of Wealth Management at IP Global
High housing affordability ratios, reaching 9 in the South (excluding London) and a staggering 13 in London, are putting pressure on these markets so its no surprise they have seen price corrections. The combination of higher mortgage rates and an influx of homeowners nearing the end of their fixed-rate periods is likely to exacerbate the strain.

However, regions such as the North and Scotland, boast more favorable price-to-earnings ratios of 5 and 4, respectively. These areas are well-positioned for potential growth in 2024. As demonstrated by our two recent developments in York and Edinburgh, interest levels have remained steady, and the remaining units in the project are still priced the same as they were at the launch in 2023.