Insurance News Archive

Increasing deals 'down to price cuts'

A rise in property transactions is down to vendors realising the need to reduce prices, an expert asserts.

Recent figures released by HM Revenue and Customs show a 40 per cent month-on-month increase in real estate being sold for more than £40,000 in March.

Liam Bailey, head of residential research at Knight Frank, comments that during the final quarter of 2008, vendors and developers realised that prices needed to be cut significantly.

He says that, due to this, the amount being asked for properties was reduced by up to 25 per cent from peak values, resulting in higher sales.

Mr Bailey adds: "The danger now is that vendors will suddenly think 'We can raise prices' and that will just kill deals dead."

He goes on to say that, despite the market, "beginning to get a bit more traction" sellers should not become ambitious with regards to the amounts they ask for.

Earlier this month, Rightmove reported that the average asking price for a property is £222,077, 1.8 per cent more than in March.

23 Apr 2009