UK homeowners selling for 4.5% below asking price, survey shows

TruthLens AI Suggested Headline:

"UK Homeowners Selling for Average of £16,000 Below Asking Price Amid Increased Market Activity"

UK homeowners selling for 4.5% below asking price, survey shows analysis cover image The Guardian 8.3
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Original Article Source: https://www.theguardian.com/money/2025/may/28/uk-homeowners-selling-less-asking-price-survey-zoopla
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TruthLens AI Summary

UK homeowners are currently selling their properties for an average of £16,000 less than the asking price, which translates to approximately 4.5% below the listed price, according to a recent survey by Zoopla. This trend occurs during what has been identified as the busiest month for home sales since the pandemic-induced boom, with house sales increasing by 6% compared to May of the previous year. The uptick in market activity is attributed to a 13% increase in the number of homes available for sale, providing buyers with a greater selection and contributing to the overall market vibrancy. The easing of mortgage rates and adjustments in how lenders evaluate affordability have allowed some buyers to borrow up to 20% more, further stimulating demand in the housing market. The average home price in the UK now stands at £268,250, reflecting a 1.6% increase or an additional £4,330 over the past year, as reported in Zoopla's house price index.

Despite these encouraging signs of recovery, particularly following the end of stamp duty breaks in April and a slowdown after Easter, the persistent gap between asking prices and sale prices indicates that sellers need to adjust their pricing expectations realistically. Richard Donnell, executive director at Zoopla, emphasized the importance of this adjustment, noting that the number of homes coming onto the market is giving buyers more options and thus influencing pricing dynamics. Regional variations in price growth have emerged, with the north-west of England, including cities like Manchester and Liverpool, experiencing the strongest annual price increases. Conversely, the southern regions of England are witnessing slower growth, with significant increases in the number of homes for sale mitigating price inflation. In Scotland, home prices have risen by an average of 2.9% year-on-year, while the overall market outlook remains optimistic, with expectations for continued sales growth and a projected 2% rise in UK home values by the end of 2025.

TruthLens AI Analysis

The article provides insights into the current state of the housing market in the UK, highlighting trends in home sales, pricing, and regional variations. It indicates that while there is an increase in sales and new listings, homeowners are still selling below their asking prices, suggesting a more competitive market for buyers.

Market Dynamics

Sales in the UK housing market have increased by 6% compared to the previous year, with a notable rise in new listings. This influx of supply is providing buyers with greater options, which can lead to more negotiations and, consequently, lower sale prices. The report from Zoopla indicates that homes are selling for about £16,000 less than their average asking price, which is approximately 4.5% below what sellers initially hoped to achieve. This trend suggests that while the market is active, sellers must adjust their expectations to align with buyer realities.

Affordability and Mortgage Rates

Falling mortgage rates and changes in lender assessments have allowed some buyers to increase their borrowing capacity by up to 20%. This easing of lending conditions has likely contributed to the uptick in sales. However, the article implies that these factors are not enough to prevent homes from selling below the asking price, indicating a potential misalignment between seller expectations and buyer willingness to pay.

Regional Price Variations

The analysis highlights significant geographical disparities in price growth, with the north-west of England experiencing the highest annual increases. Meanwhile, the south of England has seen slower growth, attributed to a rise in the number of homes for sale. This difference in regional performance may reflect broader economic conditions and demographic trends, where urban centers are driving demand in certain areas.

Implications for Sellers and Buyers

Zoopla’s caution to sellers about maintaining realistic pricing expectations suggests that the current market dynamics favor buyers. The message is clear: while there is activity, sellers must be aware of the increasing supply and adjust their strategies accordingly. This could lead to a more balanced market if sellers heed this advice.

Public Perception and Economic Impact

The overall intent behind this news piece appears to be to inform and perhaps guide public perception about the housing market. It suggests that while there is a revival in sales activity, the challenges of lower sale prices and increased inventory must be acknowledged. This could influence public sentiment regarding home buying and selling, potentially impacting consumer confidence in the housing sector and the broader economy.

Regarding the trustworthiness of the report, it relies on data from a reputable source, Zoopla, and presents a balanced view of current market conditions. However, the emphasis on the need for sellers to adjust their expectations could be interpreted as a subtle push towards a more buyer-centric market narrative.

In conclusion, while the article contains valid observations and data from the housing sector, there may be an underlying motive to adjust seller expectations and promote a more competitive environment for buyers.

Unanalyzed Article Content

Source URL: https://www.theguardian.com/money/2025/may/28/uk-homeowners-selling-less-asking-price-survey-zoopla

UK homeowners are agreeing to sell for about £16,000 below the average asking price amid the busiest month for home sales since the pandemic boom, according to a leading property website.

House sales have climbed by 6% this month compared with May last year, Zoopla found, and 13% more homes came on to the market, giving buyers more choice and helping to boost activity.

The fastest rate of sales in four years was helped by falling mortgage rates and changes to how lenders assess affordability – which mean some buyers can borrowup to 20% more.

The average UK home now costs £268,250 – 1.6% more than a year ago – an increase of £4,330 over 12 months, according to Zoopla’s house price index.

But despite the rebound, following the end of stamp duty breaks in April anda post-Easter slowdown, the typical home is still selling for about 4.5% less than the asking price, with the average asking price now standing at £367,000.

Zoopla said the gap has remained stable in recent months and urged sellers to keep their pricing expectations in check. “There are more homes coming to market, giving buyers more choice, and sellers need to remain realistic on price,” said Richard Donnell, executive director at the property site.

In England, the strongest annual price growth is in the north-west, where cities such as Manchester and Liverpool are pushing up values in surrounding areas. In Blackburn, average prices are up 5.8% over the past year, followed by Wigan (4.4%) and Birkenhead (4.1%).House pricesin Manchester are up 2.5%, and in Liverpool by 3%.

The south of England is seeing slower price growth, with larger rises in the number of homes for sale helping to temper price inflation. The number of homes for sale is up 21% in the south-west, 17% in London, and 15% in the south-east compared with a year earlier.

As a result, annual price growth across the south is now under 1%: ranging from 0.5% in the south-east to 0.9% in the south-west.

In Scotland, prices have risen by an average of 2.9% year-on-year, while the number of homes for sale is up 5%. In north-west England, where supply has increased by just 3%, stronger sales activity is supporting faster price rises.

Donnell said: “More homes for sale means more buyers looking to move. This, coupled with more attractive mortgage deals and changes to how lenders assess affordability, is supporting an increase in the number of sales being agreed.

“We expect sales to keep rising over the second half of the year, with UK home values on track to be 2% higher by the end of 2025.”

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Source: The Guardian