Almost half of London is selling below asking price


Property in the capital’s prime areas sells for an average of 9.1% below the asking price, as buyers ask sellers for bigger discounts.

Property data tracker LonRes released some figures last week showing that 45% of properties were reduced in price before being sold during Q1 of 2017.

The slowdown was caused by higher stamp duty regulations and the levy on second homes, both of which hit the prime property market in London especially hard. The major discounts coincided with an annual drop of 26% in the number of properties sold during the last quarter.

However, it wasn’t only buyers who had mixed feelings considering the changing market conditions in London’s prime market. A total of 15% of properties were removed from the markets as vendors decided they would rather wait than sell a property below value.

Katy Warrick, head of London residential research at Savills, explained:

“We expect volumes to peak this year and fall over the next five years in response to falling sales. And by 2021, we forecast that just 34,700 new homes in the year will be built in London, little more than half the 64,000 new homes we think London really needs annually to meet demand from a strong economy and growing workforce.”

This shows that, the supply and demand gap isn’t going anywhere and will probably remain the main influencing factor when it comes to house prices across the UK.

London’s prime property market my as well be more of the exception to the rule, as the way this small segment of the market has been hit by changes such as the additional stamp duty surcharge isn’t representative for the rest of the country.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

Almost half of London is selling below asking price

Almost half of London is selling below asking price


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.