The owner of one of the largest estate agent chains in the UK, Paul Smith, has stated that sellers may have to reduce prices in order to sell, as demand from buyers falls.
According to Smith, responsible for Spicer McColl, Haart, Darlows and Felicity J Lord, the property market appears to have peaked, with house prices having reached their limit. He stated that registrations from buyers had fallen by 46% in one month across the UK. He warned that the high price of homes has caused the peak, with the average house price now standing at £234,000.
Data produced by Smith’s company indicates that both the number of transactions and the growth of house prices are now slowing down. In order to sell their homes, vendors need to consider reducing prices, so they don’t struggle to attract buyers.
Smith’s warning arrives after HMRC released figures which indicated far fewer houses were sold in April than in March. However, March experienced a boom in sales as people bought before the charge on second homes was introduced. In March, 173,340 houses were sold in the UK, while just 70,690 properties were sold in April.
According to experts, house prices in London have already started to fall, with Notting Hill and Hampstead falling by 10%. However, cheaper mortgages are now available, making it easier for first time buyers.
Mortgage advisers who have studied on a CeMAP training course have all the necessary knowledge to help both buyers and sellers to find a suitable solution.
