Many prospective home buyers are looking to negotiate a lower price on property due to the current slowdown in the housing market. Increasing mortgage rates have affected purchasing power and dampened buyer demand in certain areas. This week, two-year fixed mortgage rates reached a 15-year high, surpassing levels seen during the fallout from last year’s mini-Budget. According to Zoopla, over two-fifths of sellers are now accepting offers that are more than 5% below the asking price, the highest proportion since 2018.
To determine buyer demand and the ease of selling in different areas, PropCast has introduced the “House Selling Weather Forecast”, which compares the percentage of properties for sale, sold, or under offer in UK postcodes. The lower the proportion of properties that are sold or under offer in a given postcode, the colder the market and the easier it should be to secure a discount. Gwynedd in Wales is the best county for buyers to secure a discount, with a market heat of 31°, meaning only 31% of homes for sale are under offer or subject to contract. This is followed by Dyfed at 32° and Lincolnshire at 33°.
On the other hand, Bristol is the county where buyers are least likely to secure a discount, with a market heat of 66°, indicating strong buyer demand and a hot sellers’ market. Tyne and Wear, South Yorkshire, and Wiltshire are also relatively hot markets. It’s important to note that within counties, there can be micro markets where the experience may differ.
Buyers looking to negotiate a lower price should focus on areas where sellers are struggling to sell, as they can feel more confident in offering significantly below the asking price without offending the seller. Understanding buyer demand and house prices in a specific local area is crucial. It’s also worth considering the length of time a property has been on the market and asking the estate agent about any offers received and the owner’s motivation to sell. Being well-organized and presenting a strong offer can also improve the chances of getting a lower price. Cash buyers, in particular, have an advantage in the current market. However, buyers should be cautious not to offer too low, as they may risk losing out on the home entirely.
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