Properties in the UK priced between £500,000 and £1m are experiencing the slowest market conditions for six years, with three quarters of homes in this price bracket having their asking prices lowered.
A report from the Royal Institute of Chartered Surveyors (RICS) has found that mid-to-high priced homes are struggling sell as the market remains sluggish, with 75% of homes valued at £500,000 to £1m being sold for less than their original asking price.
Meanwhile, for homes priced at more than £1m, around 69% have sold for a reduced figure compared to how much they were originally marketed for, which could be fuelled by the recent house price falls reported in London and the south-east in particular.
Demand is lower
Around 60% of homes priced below £500,000 sold for either the same or more than their original asking price, according to RICS, showing that this sector of the market is still going strong.
Barry Bhalla, founder of Acrewoods Chartered Surveyors, said: “The level of demand since the start of the year has been lower.
Predictions for property prices in the year ahead are the most positive in Scotland and the north-west according to respondents to the survey, with 31% overall expecting house price rises over the next 12 months. While in London prices continue to fall as buyer demand declines, areas such as the north-west are growing in popularity among investors, with demand supporting house prices.
Family homes in the south-east struggling
According to Brian Murphy, head of lending for the Mortgage Advice Bureau, the range of homes most affected by the necessary drops in asking prices – those priced between £500,000-£1m – represents the average cost of a family home in the south-east and London.