Property buyers in certain cities could enjoy a hat-trick of savings via the stamp duty holiday, a reduced mortgage deposit requirement and a reduction in the asking price of their property.
Last week’s Budget saw the government extend the existing stamp duty holiday until June, with homes purchased up to £500,000 paying no stamp duty, while an additional extension for sales of £250,000 or less was also announced to run until September.
They also introduced a guarantee for mortgage companies providing 95% mortgage products, making the initial cost of buying a property more agreeable for buyers.
In light of the news, Yes Homebuyers has highlighted where across the nation offers the best chance for buyers to purchase a home with a reduced asking price.
The property investment company looked at how many properties currently listed on the market had reduced in price and therefore offered buyers a further bargain.
Its research shows that across the UK as a whole, 29.2% of all homes listed for sale had dropped in price.
Aberdeen topped the list, with nearly half the sellers in the area (49.8%) reducing their price expectations while on the market.
But where are sellers sticking firm where asking prices are concerned?
Glasgow saw the lowest number of homes reduced in price, as just 9.2% of homes for sale see sellers drop their asking price expectations. Edinburgh and Belfast also rank low for property stock reductions at 11.5% and 17.7% respectively.
The research suggests that areas with higher property prices are seeing a larger proportion of their stocks reducing in cost. This could be due to the fact that they are listed at an above-average price and therefore have the wiggle room to lower these.
The company believes it may also be that the demand to availability ratio in the areas with the least reductions is higher and so a price reduction is not warranted.
Matthew Cooper, founder and managing director of Yes Homebuyers, says the findings aren’t the warning flag many buyers might assume it to be.
“While it’s true that those struggling to sell will reduce their price expectations, there are other factors that make it a more common practice,” he says.
“First and foremost, estate agents will often, if not always, overvalue a home to win business in an attempt to entice a seller away from the grasp of another agent. Once they’ve then been tied into a sole agency agreement and with little to no interest in the first few weeks, the agent will then suggest lowering the price in order to sell.”
“The seller themselves can also influence a reduction in asking price, starting high to chance their arm while also leaving themselves some wiggle room during the negotiation process. However, if this doesn’t have the desired results, they will then start to creep down through the price brackets until they find the sweet spot.”
He concludes: “So, for savvy homebuyers hitting the market in the coming months, there’s certainly money to be saved during the purchasing process. That is, of course, if you want to brave the huge market delays that have built up due to heightened demand in the last six months or so.”