According to Benham and Reeves’ data, the difference between the average asking price and the average sold price in the UK has continued to decrease. This trend indicates that sellers are becoming more practical with their asking prices.
In the UK overall, the average sold price in Q4 2023 was £283,285, 21.7% lower than the average asking price of £361,811. This marks the second consecutive quarter where the gap has narrowed, starting from Q4 2022.
In London, the difference between the asking price and the sold price stands at -24%, showing an increase from the previous quarter when it narrowed for the first time in Q3 2022.
Marc von Grundherr, director of Benham and Reeves, commented: “A further marginal cooling in house prices during the closing stages of last year was only to be expected given the ongoing headwinds of higher mortgage rates, which continued to dampen market activity on the buyer side of the market.
“The good news is it looks as though buyers and sellers are coming to terms with this new normal of higher borrowing costs, with both parties seemingly more willing to meet in the middle to progress with their plans to move.
“It will be interesting to see how the market performs over the year ahead, with mortgage market activity and house prices already starting to regain momentum. Such early signs of returning market health suggest that the gap between asking prices and selling prices could soon start to climb once again, as more buyers look to outbid each other for what stock is available on the market.”
If you want to learn about the best UK buy-to-let areas, check out some of our area guides, including:
