Average home sale ‘being agreed at £16,000 below asking price’

House sellers are agreeing sales at £16,000 below the asking price typically, according to a property website.

Zoopla, which said the mean average asking price is £367,000, added that it is “important that sellers are realistic with their expectations on price,” as home buyers return to the market after the Easter holidays.

Buyers have more choice, with 13% more homes on the market than a year ago, according to Zoopla’s figures.

Some lenders have recently changed their mortgage affordability calculations, enabling some people to borrow higher amounts, and the website said this is supporting the growth in sales.

The website also said that, within England, the North West is the hottest housing market for price rises.

Higher home values and rents in bigger cities such as Manchester and Liverpool are pushing housing demand into nearby areas, boosting house prices, Zoopla said.

It said that Blackburn has seen 5.8% annual house price growth, Wigan has seen a 4.4% annual rise and Birkenhead has recorded a 4.1% annual increase in house prices.

An increased number of homes for sale in southern England is significantly boosting buyer choice and keeping price growth in check, the website said.

It said there are 21% more homes for sale in the South West than a year earlier, 17% more in London and 15% more in the South East.

Widened choice, along with affordability constraints, explains why house price growth is less than 1% across the regions of southern England, from 0.5% in the South East to 0.9% in the South West, Zoopla said.

There are just 3% more homes for sale in the North West of England and 5% more in Scotland than a year ago. House prices in Scotland have seen 2.9% annual growth on average.

Richard Donnell, executive director at Zoopla, said: “There are more sales and stronger house price increases in northern regions of England and Scotland, where homes are more affordable. In southern regions of England, affordability continues to weigh on price inflation and the number of sales being agreed.

“Sellers and buyers need to adopt different tactics based on where they live across the UK; however, all sellers need to keep their feet on the ground and be realistic on pricing expectations.

“We expect sales to keep rising over the second half of the year, with UK home values on track to be 2% higher by the end of the year.”

Martin Bennett, owner of Blackburn-based Crown Estates and Lettings Agents, said: “Business is booming in Blackburn, with increased demand for properties both at the lower and top end of the market.

“From my experience, properties that are priced correctly are going under offer within two weeks of being listed, while it’s not uncommon to have 10-plus potential buyers on the first day of viewings.”

Tom Bill, head of UK residential research at Knight Frank said: “Buyers can see there is a healthy supply of property on the market this spring, which means they have become choosier.”

Matt Thompson, head of sales at London-based estate agent Chestertons, said: “There has been a stark uplift in agreed sales in May and as buyer demand remains strong, we also expect a busier-than-usual summer market.”

Sarah Coles, head of personal finance, Hargreaves Lansdown said: “There are now plenty of (mortgage) deals priced at under 4%, which opens up affordability for so many more buyers.”