Record price reductions in 2024
Almost one million homes for sale had their prices reduced during 2024. This is according to property analytics firm TwentyEA (https://www.twentyea.co.uk/). This is the highest number ever recorded, with 38% of all concluded listings this year seeing a reduction.
This represents an 8.1% increase on 2023’s figures and 17.6% higher than 2019. Compared with last year, the price reduction rate in 2024 has increased most in the lower price bands – below £350k – and rose everywhere in the UK in 2024 except for Northern Ireland.
The price reductions were examined regionally and by price band. What was found was that there were two specific trends which suggested the reductions might not be caused by agents overvaluing but instead were more likely driven by sellers with unrealistic price ambitions.
TwentyEA explains:
“Firstly, price reductions are more prevalent within the lower price brackets. Secondly, there is an increase of price reductions concentrated within specific regions such as Wales. If agents were overvaluing, we would expect to see a more stark growth in price reductions across all price brackets and a more even spread of reductions occurring across the regions but that’s not the case, so we suggest sellers are demanding unrealistic asking prices.
“Given the prevalence of price reductions happening right now, we’re expecting to see this continue for the foreseeable future.”
What do Jukes Estate Agents Harlow have to say?
Sales & Marketing Director Geoff Flewers says: “Whilst I have the utmost admiration for TwentyEA, I believe they are wrong in this instance. Wrong because there is little or no doubt that in Harlow, there has been far too much overvaluing going on. Yes I accept that there are plenty of Vendors who believe their property is worth more than it is. However, surely that is up to agents to prove that it is not worth their valuation?”