Southern cities such as London, Oxford and Cambridge are increasingly becoming buyers’ markets, with sellers increasingly having to accept larger discounts.
That’s according to the latest Hometrack UK Cities House Price Index, which found that the average discount from asking price in the capital had rocketed from 0.5% in 2014 to 4% today. What’s more, in some regions in London discounts of up to 10% are being registered.
Meanwhile, house prices have fallen in nominal terms in Oxford, Cambridge and Aberdeen, as a result of weakening demand, affordability and economic factors.
Despite the difficulties seen in these cities, the average discounts sellers are accepting in order to complete a sale across the country are falling. Hometrack analysed Zoopla listing data and found that the average discount has dropped from 3.2% between 2014 and 2016 to 2.9% today.
Birmingham and Manchester are two particularly notable cities in this area, having seen the average discounts more than halve from 6% in 2013 to just 2.7% in 2017. According to Hometrack, this is “more more evidence of the underlying strength of the market in these cities”.
Indeed, Birmingham, Manchester, Edinburgh and Glasgow all saw house price growth of more than 7% over 2017.
Commenting on the results, Craig Hall, new build manager at Legal & General Mortgage Club, said that the path to home ownership for first-time buyers is a little easier now due to a combination of more sustainable house price growth, competitive mortgage rates and various government schemes aimed at helping buyers get onto the ladder.
He added: “However, for those unsure of how to make their first move, speaking with a mortgage broker can make all the difference. Not only will this provide them with a greater understanding of the wide-range of products available, but it will also offer valuable insight into other alternatives that can help them get their foot on the ladder, such as through Help to Buy, Shared Ownership and other schemes.”
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