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Property is a huge investment and it often takes people many years in order to save up enough deposit to be able to buy a home. This means homebuyers have to often look at different areas or completely new areas in order to be able to afford the property they need. New research by GetAgent.co.uk has revealed which regions of the UK are home to the biggest reductions in the value of properties currently on the market.
With the average house price in the UK being £237,834, homebuyers need a deposit of anywhere between five and 15 percent.
Homebuyers will be happy to learn that there are huge savings to be made on properties at the moment.
Based on listings data where properties for sale have reduced their asking price by 15 percent or more, Scotland is currently the selling discount hotspot of the UK.
Home sellers that are lowering their expectations to secure a sale are doing so by an average of 22 percent.
In Wales, homes reducing by 15 percent or more are currently offering discounts at an average of 21.3 percent, similar to Northern Ireland offering a reduction of 21 percent.
The North West and North East are home to the most significant reductions in England at 20.6 percent.
London is known to be one of the most expensive places to live, with the average property price coming in at nearly £500,000, but with properties failing to sell in the current market, London is seeing an average discount of 19.4 percent.
GetAgent has also looked at what these discount reductions mean on the current average property price in each region of the UK.
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While London is home to the lowest percentage reduction, the high price of property means that the capital ranks top for the biggest saving.
On the current average house price of £479,018, a 19.4 percent reduction would see homebuyers pay almost £100,000 less for a property that is currently struggling to sell.
The South East will get homebuyers the second biggest monetary discount with savvy homebuyers being able to save £64,575 on the current average house price by opting for a reduced property.
The East of England will save homebuyers a reasonable £58,072, the South West will save buyers £52,379 whilst East Midlands will still be able to save homebuyers £40,125.
Founder and CEO of GetAgent.co.uk, Colby Short commented: ““We’ve seen the market explode into action in recent months and a tidal wave of buyer demand has resulted in properties flying off the shelves and house prices increasing to an all-time high.
“Although conditions remain favourable for buyers, particularly with the addition of a stamp duty holiday, many will still be on the hunt for a bargain.
“While it’s unlikely that they’ll find an abundance of reduced properties in the current climate, they are out there. So those lucky enough to snap one up will save a considerable amount of money by doing so, in addition to the tax relief already provided by the Government.
“There are many reasons that a property may be reduced, but it isn’t necessarily a negative one. A property lingering on the market for a long-time may cause alarm bells to ring if the price isn’t the only issue. However, the figures show that on average, just 20% of properties reduced by 15% or more are due to a slow sale having been listed for 16 months or longer.
“More often than not, a mouth-watering reduction in price is due to seller circumstance and the need to move quickly and so securing one of these properties can mean a big win for buyers.”
A couple of reasons that a home is not selling may be either because it needs a lot of work doing to or even the layout of a house could knock thousands off of the asking price.
However, purchasing a fixer-upper home is a great way to purchase a home below market and sell it for more than you paid.
Therefore it may be great to snap up those houses which have been reduced to help make further savings which could be spent elsewhere.
In Scotland, the average price for a flat last year was £151,891 according to the GOV website but renovation homes in the country often sell for as little as £28,000.
Some parts of Wales can see renovation properties costing just £50,000 compared to the average price for a home being £191,094.
This creates a saving of £141,094 which homebuyers could then spend renovating the home.
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