Gap between average seller expectation in the UK and actual selling price put at 45%

The difference between the average asking price and the actual selling price for property in the UK is currently 45%, with the gap highest in England and smallest in Scotland, new research has found.

However, the difference between the current average asking price of £414,359 and the average sold price of £226,906 does not mean seller expectations are too high, according to the study from hybrid estate agent Emoov.

It reveals that the biggest gaps in the UK are in South Gloucestershire, Inverclyde, East Ayrshire, Nottingham and Glasgow at 43%, 41%, 32%, 31% and 30% respectively.

In South Gloucestershire the average asking price is currently £470,117 while the average sold price is £267,397, in Inverclyde in Scotland the average sold price £95,069 compared with an average asking price of £159,932.

In East Ayrshire in Scotland the average sold price is currently £136,456 but the average sold price is £93,053, in Nottingham the average asking price is £195,192 and average sold price £135,583, while in Glasgow the average asking price is £179,663 and the average sold price is £125,918.

County Durham with a gap of 29%, Southampton at 28% and London, Renfrewshire and Surrey all at 27% complete the top 10 for biggest reality gaps between average asking and sold price across the UK.

In England the gap is 25% with properties selling for an average of £243,639 but sellers listing at an average asking price of £323,336 while Scotland has the smallest gap with sellers asking £186,371 but buyers paying £156,495 on average, a difference of 16%.

In Wales, the gap is a difference of 21% between asking and sold prices with sellers asking £188,731 and the average sold price at £148,952. The largest gap in Wales is Gwynedd where the average asking price is currently £186,362 while the average sold price is 23% less at £144,018.

The research also shows that despite almost every area of the country being home to a lower average sold price than the average asking price, there are a few areas where the market is out performing seller expectations.

Across the East Riding of Yorkshire, the average asking price is £170,981 but the current average sold price is £176,318, an increase of 3%. In Nottinghamshire it is 2% higher and in the Orkney Islands and North Somerset at 1%, the average sold price is also higher than the average asking price.

Russell Quirk, Emoov chief executive officer, said:

‘In slower market conditions a seller’s expectation is always likely to differ from what the market dictates and what a buyer is willing to pay. It’s only natural that a seller will tend to overprice their property, largely due to the emotional element, and while many will have to reduce their price to find a buyer this research doesn’t suggest they have to do so by 45%.

‘What it shows is that the average asking price of properties being listed in the UK is at the £400,000 bracket, while those that are selling have an average price in the £220,000 bracket.’

Kindly shared by Property Wire