Key facts
- Properties priced too high in the UK may take four times longer to sell compared to accurately priced homes.
- Savills research shows 33% of sales required a price slash, and 11% needed two or more reductions.
- Accurate pricing leads to an average sale in 28 days, while one price cut extends this to 100 days.
- Two price cuts can increase the sale time to almost five and a half months.
- Sellers who reduce prices trim an average of 4.4% per cut.
- UK house prices fell 3.7% year-on-year to £545,000 by May, according to the Office for National Statistics.
Property sellers in the UK who overprice their homes risk significantly longer selling times, potentially waiting up to five and a half months, according to new research from estate agent Savills. This is four times longer than for properties listed at an accurate initial asking price, which can expect to sell within 28 days.
Savills found that 33% of property sales required a reduction in the asking price to achieve a sale, with 11% of these needing two or more price cuts. If a seller is accurate with their initial listing price, they can anticipate selling within 28 days. However, a single price cut can extend this period to approximately 100 days, and two cuts can push the time to reach an offer up to nearly five and a half months.
Lucian Cook, residential research director at Savills, stated that the data highlights the importance of correct pricing, noting that sellers naturally tend to aim for the top end of their valuation range for their largest asset. The research also indicated that sellers forced to slash their asking price typically reduce it by an average of 4.4% each time. Those who had to cut their initial price four times saw the total sale price decrease by 15.4%.
This trend aligns with recent official figures, as the Office for National Statistics reported on Wednesday that UK house prices continued to fall in the year to May, decreasing by 3.7% to an average of £545,000. Properties in London's most affluent areas have been particularly affected by the market slowdown, with house prices plummeting by 22.8% in Westminster and 10.7% in Kensington and Chelsea.