Hamptons: Record number of homes sold at a discount in 2023

A record 50% of homes sold in England & Wales last year were purchased following a price reduction, Hamptons analysis has revealed.

The figure rose from 32% in 2022.

It comes as research from the agent suggests 2023 was a “subdued year” for the market, with around 1m homes selling at lower prices.

Of the homes sold following a price reduction, the average buyer went onto negotiate an extra 1.4% discount from the final asking price, Hamptons said.

Price reductions peaked in October when 54.6% of homes sold in England & Wales had their asking price cut, according to the research.

In December, however, 51.5% of homes were sold following a price reduction.

January is likely to see a raft of price reductions as homes that didn’t sell in 2023 see their asking prices cut to attract a buyer, Hamptons said, adding: “We started to see this in December as sellers prepared for the new year.  The average home reduced last month had already been on the market for 75 days, up from 64 days in November. 

“However, as affordability conditions improve and demand strengthens, fewer sellers will likely need to adjust their expectations in future months.”

The research found that while 24% of sellers in England & Wales still sold above their asking price in 2023, 55% achieved less than they asked.

Of those buyers successfully negotiating a deal last year, they achieved a 3.5% discount on average, less than the 5.1% discount negotiated in 2009 when prices were falling further and faster.   

It also took longer to sell a home in Great Britain last year than during any of the last 10 years, Hamptons said.

With an average of 56 days between a home coming onto the market and it going under offer, on average sellers had to wait 22 days longer to find a buyer than in 2022.

Aneisha Beveridge, head of research at Hamptons, said: “2023 will go down as a subdued year for the housing market.  

“The cost of living squeeze coupled with yo-yoing mortgage rates created an air of uncertainty and meant that households chose to sit tight rather than move.  But while transactions bore the brunt of the slowdown, a house price crash didn’t materialise.  Instead, price falls were limited to a maximum of 5% across the country.

“Consequently, the housing market is entering the new year on a much firmer footing than it was 12 months ago.  Although confidence could still be vulnerable to economic shocks and global events, we expect to see more prospective buyers enter the market this year, many of whom sat tight in 2023.  This might start to shift the power back into the hands of those selling and should also begin to put a floor under prices, limiting the chance of further falls.”