THERE is a generally positive sentiment in the property market that reflects a genuine belief that the worst of the economic crisis is behind us and the housing market is at the early stages of a recovery.
The latest research into property prices from Zoopla.co.uk shows that fewer sellers are feeling the same level of pressure to reduce prices as over the past couple of years – which bodes well for a recovery in house pricing.
The proportion of properties for sale that have had their asking price dropped at least once now stands at 30.7 per cent, down from 34.3 per cent 12 months ago. This marks the third successive quarter where the proportion of reduced price properties has fallen and is the latest sign that confidence is returning to the market.
The amount by which asking prices are being discounted on average has also fallen to 6.1 per cent, the lowest level since November 2010. But the north-south property divide remains, with the top ten areas with both the highest proportion of discounted properties and the biggest asking price reductions all in the north.
Yorkshire has been particularly hit. Six of the ten areas with the biggest proportion of discounted properties are in Yorkshire, including the top three, with 42 per cent of properties in Rotherham, 41 per cent in Doncaster and 40 per cent in Wakefield having been reduced in price coming to the market. And Barnsley has the highest average discount in the country to the original asking price at 8.6 per cent followed by Liverpool (8.5 per cent) and Blackpool (8.3 per cent).
London has the lowest proportion of price reductions in the UK with only 24 per cent of properties for sale having had their asking price lowered.
Edinburgh (25 per cent) and Bournemouth (26 per cent) complete the top three. And Edinburgh has the lowest average asking price discount in the UK, currently standing at just 4.9 per cent off the original asking price, with Swindon (5.3 per cent) and Bedford (5.4 per cent) second and third.
As for Nottinghamshire, 34.21 per cent of homes on the market have been reduced with an average price reduction of 7.06 per cent.