Property sellers across Britain are slashing their asking prices at the fastest rate seen in 15 years. During September, an average of more than 3,000 properties per day saw their prices reduced, according to data shared by Rightmove. This surge in price cuts is attributed to a combination of an oversupply of homes on the market and many sellers setting initial prices that fail to meet current market expectations. According to the property website, The total was the highest of any month for 15 years and was driven, in part, by a glut of homes on the market and some sellers setting unrealistic expectations.
Colleen Babcock of Rightmove noted that listing at an unrealistic price can create a significant disadvantage for sellers. Once a property has been on the market for a period before undergoing a reduction, potential buyers often start to question the home’s quality, even when no issues exist. Babcock emphasized that in a market characterized by high choice, initial impressions are vital for a successful sale.
The data highlights the stark reality of these reductions, which averaged nearly 7%—a drop equivalent to approximately £21,000 on a typical home. While 34% of listed homes underwent price cuts last month, this figure remains just below the 36% peak recorded in September 2023. Properties that required a price reduction took significantly longer to sell, averaging 119 days compared to just 39 days for those that sold at their original asking price. The proportion of listed homes that eventually had a price cut peaked in 2023 and has remained relatively high since.
Market dynamics are increasingly favoring buyers, who are adopting a more cautious and selective approach.
This trend is driven largely by mortgage rates reaching three-year highs, forcing many prospective homeowners to prioritize strict budget constraints to ensure monthly payments remain affordable. Zoopla reports that while the number of homes available for sale in September rose by 5% year-on-year, the volume of agreed sales dropped by 9% over the same timeframe.
Data from Zoopla further indicates that a quarter of all newly-listed homes in September had already been on the market within the past year. Of those properties returning to the market, six out of ten did so with a lower asking price. Richard Donnell, executive director of research at Zoopla, observed that homes requiring a price reduction are half as likely to find a buyer within the standard three-month window. Six in 10 were returning at a lower asking price.
September typically represents a peak month for price adjustments as sellers aim to finalize transactions before the calendar year ends. Despite this seasonal trend, the current climate reflects a broader struggle between buyer affordability and seller pricing strategies in a high-interest-rate environment.
