Sellers in Britain cut asking prices on more than 3,000 properties daily during September, according to Rightmove data shared with the BBC. This marked the highest monthly total in 15 years, driven by an oversupply of homes and sellers setting unrealistic initial prices.
The average price reduction was nearly 7%, equivalent to approximately £21,000 off a typically valued home. Rightmove found that homes with a price cut took an average of 119 days to sell, compared with 39 days for properties listed at a single price.
A third of all listed homes underwent a price reduction in September, only slightly down from the peak of 36% seen in September 2023. Colleen Babcock of Rightmove said that once a property has been on the market for a while before reducing price, "some buyers start asking questions, even when there is nothing wrong with the property."
Rival property portal Zoopla reported that buyers hold the advantage in the current market. With mortgage rates at three-year highs, buyers operate within tight budgets. The number of homes for sale rose 5% in September compared with a year earlier, yet sales agreed fell 9% over the same period.
Zoopla's data showed a quarter of newly listed homes in September had been listed within the previous year, with six in ten returning at a lower asking price. These relisted properties took longer to sell.
Richard Donnell, executive director of research at Rightmove, noted that properties requiring price cuts were half as likely to find a buyer within the normal three-month timeframe.
Tarah Lourens, chief operating officer at Rightmove, said "emotional" factors influenced seller pricing, as they "put a value on the time and money they have invested in a home." However, buyers considered only what they could afford.
Craig Webster of Tiger Sales and Lettings in Blackpool emphasised that setting the correct initial price when newly listed was critical. Katie Griffin from surveyors Sawdye and Harris in Devon warned that a price correction could ultimately push sellers to accept less than even a revised asking price.
Scotland's Home Report system, which requires independent valuation before listing, provides sellers pricing guidance. Zoopla data showed 74% of Scottish homes listed in April, May and June sold within three months, compared with 30% in London.