Home sellers cut asking prices on 3,000 properties a day

Sellers in Britain reduced asking prices on more than 3,000 properties daily in September, marking the highest monthly average in 15 years, according to Rightmove data shared with the BBC.

The typical price cut amounted to nearly 7%, equivalent to roughly £21,000 off a home's asking price. Rightmove said the surge reflected an oversupply of homes and some sellers setting unrealistic initial valuations.

Homes that underwent price reductions took an average of 119 days to sell, compared with 39 days for properties listed at a single price. The proportion of listed homes with price cuts stood at 34% in September, only marginally below the recent peak of 36% in September 2023.

Colleen Babcock of Rightmove explained that once a property has been on the market for an extended period before a reduction, "some buyers start asking questions, even when there is nothing wrong with the property." She noted that in a saturated market, "first impressions matter."

Mortgage rates hitting three-year highs have forced buyers to operate within tighter budgets, according to property portal Zoopla. That platform found homes for sale rose 5% year-over-year in September, yet sales agreed fell 9% in the same period. Zoopla also reported that a quarter of newly-listed homes in September had previously been marketed within the last year, with 60% returning at lower asking prices.

Richard Donnell, executive director of research at Rightmove, stated that properties needing price reductions were "half as likely to find a buyer within the normal three-month timeframe."

Scottish properties sold faster than elsewhere in Britain. Donnell's data showed 74% of homes listed in April, May and June in Scotland sold within three months, compared with 30% in London. He attributed this to Scotland's Home Report system, which requires independent valuations before properties are listed, providing sellers with accurate pricing guidance.

Craig Webster, an agent at Tiger Sales and Lettings in Blackpool, emphasized getting the initial price correct when first listing. "That's when you have the greatest opportunity to capture the attention of active buyers," he said.

Katie Griffin from surveyors Sawdye and Harris in Devon warned that price corrections can damage buyer confidence. A revised asking price may lead sellers to accept even less, she noted.