London commuter towns see the biggest rise in estate agents cutting property more than anywhere else

Here’s why

London commuter towns – more than anywhere else in the UK – are seeing a growing number of properties reduced in price, according to research by online estate agents HouseSimple.com. Reading is the property price cutting capital of the UK, with the percentage of properties currently for sale, which have been cut in price, almost double the level six months ago.

HouseSimple research looked at the percentage of properties dropped in price by estate agents since they were first advertised, and compared the percentage in February 2017 with August 2017. The top ten towns or cities with the largest percentage growth in price- reduced properties, comparing February and August, are all within an hour of central London by train. 

Reading has a commuting time of 30 minutes and property prices have risen more than 30 per cent over the past five years. But HouseSimple research found that 44.0 per cent of properties currently for sale in the Berkshire town have been reduced in price since they were first advertised. That compares to 22.8 per cent of properties on the market in February 2017 that had a price reduction. The percentage of price cut properties has almost doubled in six months – more than anywhere else in the country. 

In Basingstoke, 50 minutes by train into Waterloo, 35.6 per cent of properties currently for sale have been reduced in price since they were first marketed. That compares to 19.1 per cent when the research was conducted back in February 2017, an increase of 16.5 per cent. 

The analysis reveals a clear North South divide in terms of towns/cities where there is a growing percentage of price reductions by agents, with 11 out of 20 of the biggest increases – comparing August to February 2017 – in the south or south east. While 14 out of 20 of the towns or cities where the percentage of price reductions has actually fallen when comparing August to February, are in the north or Scotland. 

The following table shows the 20 major UK towns and cities ranked in order of the biggest increase in percentage of properties currently being advertised that have been reduced in price, compared to February 2017:

Town/City	Region	Listings – Feb 17	per cent of listings reduced in price – Feb 17 (A)	Listings – Aug 17	per cent of listings reduced in price – Aug 17 (B)	per cent Increase between (B) and (A)
Reading	South East	377	22.8 per cent	562	44.0 per cent	21.2 per cent
Basingstoke	South	324	19.1 per cent	494	35.6 per cent	16.5 per cent
Basildon	East	420	26.7 per cent	517	41.0 per cent	14.3 per cent
Chelmsford	East	229	21.4 per cent	346	34.4 per cent	13.0 per cent
Woking	South East	307	31.6 per cent	435	43.2 per cent	11.6 per cent
Winchester	South	90	25.6 per cent	154	36.4 per cent	10.8 per cent
High Wycombe	South East	390	22.8 per cent	462	33.6 per cent	10.8 per cent
Watford	East	405	31.4 per cent	545	42.0 per cent	10.6 per cent
Luton	South East	500	21.4 per cent	744	31.9 per cent	10.5 per cent
Northampton	East Mid	644	23.9 per cent	761	33.8 per cent	9.9 per cent
Portsmouth	South	399	27.0 per cent	502	36.8 per cent	9.8 per cent
Brighton	South East	578	32.5 per cent	777	42.2 per cent	9.7 per cent
Chester	North West	366	25.1 per cent	417	34.3 per cent	9.2 per cent
Shrewsbury	West Mid	112	29.5 per cent	112	38.4 per cent	8.9 per cent
Hereford	West Mid	160	26.9 per cent	174	35.1 per cent	8.2 per cent
Slough	South East	507	23.6 per cent	794	31.7 per cent	8.1 per cent
Cambridge	East	266	20.0 per cent	311	28.0 per cent	8.0 per cent
Wigan	North West	494	37.5 per cent	497	45.5 per cent	8.0 per cent
Salisbury	South West	102	30.4 per cent	112	38.3 per cent	7.9 per cent
Maidstone	South East	426	32.2 per cent	460	40.0 per cent	7.8 per cent

August 2017

Looking at August 2017 figures in isolation, more than a third of properties (33.5 per cent) currently for sale in over 100 of the UK’s major towns and cities have had a price reduction since estate agents first marketed them. In central London, more than a third (35.0 per cent) of properties have been dropped in price. 

Across the
country, 18 of the towns or cities analysed by HouseSimple, are members of the 40 per cent club – where 40 per cent or more of properties currently for sale have been reduced in price. This compares to just eight towns or cities back in February. In Darlington, almost half the properties (47.0 per cent) currently being marketed have been dropped in price to secure a sale. In Wigan, 45.5 per cent of properties have had a price reduction. 

This compares with Salford and Edinburgh, where just 11.3 per cent and 11.7 per cent of properties have been cut in price. Both areas have seen the percentage of properties reduced in price fall in August 2017 compared to February 2017. 

London, Manchester and Birmingham

Of the three largest cities in the UK, London (35.0 per cent) has the highest percentage of price reductions on current stock. This compares with 27.5 per cent in Birmingham and only 16.6 per cent in Manchester. This suggests that estate agents in the capital are finding it hard to secure a sale, due to inflated prices, and sellers are having to drop asking prices to attract buyers. 

Alex Gosling, CEO of online estate agents HouseSimple.com said: “The London commuter belt has seen a property price boom over the past decade, as Londoners priced out of the capital’s property market have moved further out to take advantage of cheaper stock and excellent local amenities including highly rated state schools. 

“As a result, the gap between property prices in many of the commuter towns and prices in central London has narrowed. Anyone looking in some of the most popular commuter towns, 30 minutes from London, may now find that properties aren’t any more affordable. That is putting pressure on local property markets, as buyers may be starting to look further afield for value for money. 

“For anyone selling a property, have the lowest price you’re willing to take in the back of your mind, and be prepared to negotiate if a strong buyer – someone with finance in place who can move quickly to exchange – makes an offer. Sometimes holding out for an offer that might be a few thousand pounds more, could result in your property sitting on the market for months.”