Home sellers are drastically reducing prices and facing a significant increase in abandoned sales as the property market weakens ahead of the upcoming Autumn Budget. Data shows a 16% year-to-date increase in price reductions compared to last year, more than doubling the cuts seen during the booming market of 2021-2022. Additionally, abandoned property sales have risen by over 9% this year, with experts attributing the downturn to buyer anxieties about potential tax increases in the Budget, such as an annual property tax, a capital gains tax, and landlord taxes, as well as broader economic uncertainty.
Real estate agents report a semi-paralysis in the market due to these Budget fears, forcing sellers to lower their asking prices to attract buyers who currently hold leverage and are negotiating aggressively. In some areas, like inner London, price reductions have soared by 69% compared to 2019, and a high percentage of properties are being sold for less than their original purchase price, with buyers often pushing for last-minute price reductions.
The surge in collapsed sales is widespread across the UK, even as the total number of property transactions is declining. This challenging market environment leads some advisors to suggest sellers priori... download the app to read more
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