Chestertons: Price reductions declining as buyers return to the capital

Fewer sellers are willing to cut their asking prices, Chestertons claims.

The agent said vendors in the capital have already priced in many of the discounts, while demand continues to outstrip supply.

It claims to have sold 5% more properties in August compared to July and registered more new buyers.

This suggests house hunters have digested the higher mortgage rates and are taking advantage of the slower sales market, the agent said.

Buyers are also being encouraged by the fact that there are currently more mortgage products available than any time since February 2022, which is increasing competition amongst lenders and driving down rates, Chestertons said.

Meanwhile, some homeowners appear to be delaying putting their property on the market and are instead choosing to let them on a long- or short-term basis. This has caused a 10% fall in the number of new properties being put up for sale in August versus July, the agent said.

Matt Thompson, head of sales at Chestertons, said: “Some sellers may be hesitant to put their property on the market at the moment, but there are still plenty of buyers out there waiting for the right property at the right price and demand continues to outstrip supply in the capital. 

“As a result, sellers have been less willing to accept any further price reductions last month; particularly as many had already adjusted their initial asking price to reflect the  less active sales market.”

Chestertons’ data found that there was a 24% decrease in the number of sellers willing to reduce their asking price in August. 

Thompson added: “In order to still find a suitable home within their budget, house hunters are adopting an even more flexible approach to their property search and are increasingly open to compromise on location and size of the property.”