First Time Buyer
These commuter town properties see rise in price cuts
More than anywhere else in the UK, commuter towns within an hour of central London by train are seeing a growing number of properties reduced in price.
Research by online estate agent HouseSimple looked at the percentage of properties dropped in price by estate agents since they were first advertised, comparing the figures with February and August 2017.
It found that Reading, 30 minutes away by train, is the price cutting capital of the UK, as the number of properties having a price trim almost doubled in just six months.
Despite property prices in Reading having risen more than 30% over the past five years, 44% of those currently for sale have been reduced in price since first advertised. That compares to the 22% recorded in February 2017.
In Basingstoke, 50 minutes by train into Waterloo, 35% of properties currently for sale have been reduced in price since first listed. That compares to 19% when the research was conducted back in February 2017.
The table below shows the 20 major UK towns and cities ranked in order of the biggest increase in percentage of properties currently being advertised that have been reduced in price, compared to February 2017:
Across the country, 18 of the towns or cities analysed by HouseSimple have 40% or more of properties currently for sale which are reduced.
In London, HouseSimple found 35% of reductions, compared with 27% in Birmingham and 16% in Manchester, suggesting that estate agents in the capital are finding it hard to secure a sale, due to inflated prices, meaning sellers are having to drop asking prices to attract buyers.
Alex Gosling, CEO of HouseSimple, said: “The London commuter belt has seen a property price boom over the past decade, as Londoners priced out of the capital’s property market have moved further out to take advantage of cheaper stock and excellent local amenities including highly rated state schools.
“As a result, the gap between property prices in many of the commuter towns and prices in central London has narrowed. Anyone looking in some of the most popular commuter towns, 30 minutes from London, may now find that properties aren’t any more affordable. That is putting pressure on local property markets, as buyers may be starting to look further afield for value for money.”
Gosling added that for anyone selling a property, it may be wise to have an idea of the lowest price you’re willing to take, and be prepared to negotiate if a strong buyer makes an offer.
“Sometimes holding out for an offer that might be a few thousand pounds more, could result in your property sitting on the market for months,” he said.