The sun has deigned to make an appearance for more than a couple of hours recently, and the coming of spring often means that you think about doing different things to improve your life. Perhaps that means looking for a different job, perhaps upgrading your car, going part- (or full-) time, or maybe you want to move home, especially if you are a first-time buyer.
Jumping into the property market can be a daunting experience, especially if it's the first time you are doing so. The number of things that need to be considered is completely overshadowed by the question of how you are going to afford it.
There can be a gulf between your expectation of what you can afford and what you'd like to buy. And to achieve your goal of buying the type of property you want, maybe it's the number of rooms you need, the size of garden, or its location, you might have to compromise on something to get the home you want, often resulting in you taking on what is euphemistically styled as “a project”. That in itself will require additional funds, so it seems never-ending.
Leading supplier of business software The Access Group, has studied the latest market information and has realised that the UK has just entered into its strongest buyer's market “in a generation”. The pressures elsewhere in the economy have forced sellers into reducing their prices by as much as 22% in order to secure a sale.
Where prices are falling the most
Perhaps understandably, the gap between what a seller expects for their property and what they eventually sell it for is most obvious in London, where properties are now selling for an average 50% lower than the original asking price. This equates to a massive £600,000 saving per transaction.
However, as The Access Group data shows, this is a repeated phenomenon around the country, with Wakefield, Gateshead, North Yorkshire, Chorley and Caerphilly all showing an average 40% drop in the difference between the original asking price and what the properties eventually sold for.
Areas still above asking price
There are pockets where the trend is being bucked. Trafford is still selling properties at 39% over the asking price on average, while Harrow and Chichester are at an average of 4% more, but these areas are quite limited and the likelihood is that these will start dropping as they catch up with the rest of the country.
How long sales are taking
What this also shows is that certain places are experiencing up to 605 days, Bournemouth, Poole and Christchurch are the examples cited in Access's data, for the average completion on the sale in areas where the seller is reluctant to reduce the asking price.
But while that is extreme, the data certainly highlights the point that the trend countrywide is for the buyer to be in control of the transaction. Buyers can put in low offers with the likelihood that it might be accepted.
The top ten biggest gaps (sold below asking price)
Location | Difference |
Southwark | -53% |
City of Westminster | -52% |
Lambeth | -52% |
Kensington and Chelsea | -51% |
Knowsley | -47% |
Brent | -47% |
Lewes | -44% |
Bournemouth | -43% |
Broxbourne | -42% |
Hammersmith and Fulham | -42% |
Source: The Access Group
The bottom ten smallest gaps (sold above asking price)
Location | Difference |
Trafford | +39% |
Chichester | +4% |
Harrow | +4% |
Merton | +1% |
Newham | -1% |
Stafford | -2% |
Tewkesbury | -2% |
Rochford | -3% |
Chelmsford | -3% |
Ashford | -4% |
Source: The Access Group
What is driving the market
These figures show the reality of the market as it currently stands. Buyers generally have far less money with which to buy expensive homes. If the demand is not there, simple economics dictate that, with a greater supply of homes on the market chasing fewer buyers at the expected price, the price will necessarily have to be reduced in order to encourage the buyers back.
The geopolitics of the wars in Eastern Europe and in the Arabian Gulf has had the effect of making goods more expensive, especially when it comes to heating and powering the home. With concerns about affordability driving many a buyer's decision, if sellers want to get their property sold, they are going to have to bend to the pressure of the market or take their property off sale until the situation improves for them.
What this means for buyers
For buyers, then, there is a bargain to be had out there, and you are in the driving seat. But, of course, you will still want to look after every penny, which includes getting the best legal representation for the planned purchase at as low a price as possible. Which is why you should approach Homeward Legal.
Choosing your conveyancing support
Our conveyancers at Homeward Legal will start work as soon as you agree to the quotation and appoint them to represent you.
Homeward Legal provides a fixed quote, meaning what you are quoted is what you pay for the standard conveyancing process, helping you budget with confidence.
To further protect homebuyers, Homeward Legal also operates a ‘no completion, no fee' promise, meaning you will not pay if your transaction does not reach completion.
Call to get your conveyancing quote started or discuss your plans to move, or use Homeward Legal's easy-to-use online quote generator.