Estate agents are warning that overpriced homes risk sitting on the market as cautious buyers negotiate harder and sellers face growing pressure to reduce asking prices. The warnings follow Nationwide’s latest House Price Index, which showed annual growth slowed to just 0.5% in October, its weakest rate since January 2024. Prices were unchanged month-on-month, following a 0.3% decline in September.
Industry figures say the figures reflect a market where buyers have more choice and less incentive to compromise. Jonathan Hopper, CEO of Garrington Property Finders, said: “On a national basis, we’re in soft landing territory. But parts of the runway remain very bumpy.” He warned that sellers across much of southern England face particularly difficult conditions.
Supply and demand shift
Hopper said buyers are increasingly factoring the risk of further price falls into their offers. “When deals are struck, the negotiation is increasingly about pricing tomorrow’s risks as well as today’s value.” However, he cautioned that a substantial reduction does not necessarily represent good value. “Just because a seller offers a discount off an ambitious asking price, that does not automatically make a home good value.”
Iain McKenzie, CEO of The Guild of Property Professionals, said sellers can no longer depend on rising house prices to support ambitious valuations. “Sellers can no longer rely on general market appreciation to do the hard work for them.” He pointed to Zoopla figures showing agreed sales down 7% year-on-year over the previous four weeks. Meanwhile, the number of homes available for sale increased by 7%.
Longer selling times
The imbalance is giving buyers more negotiating power. McKenzie said homes attracting buyers are taking an average of 44 days to sell nationally, broadly unchanged from a year earlier. However, he warned that sellers must respond to changing market conditions. “An ambitious asking price can cost valuable time and ultimately lead to reductions.”
Nigel Bishop of Recoco Property Search said October had failed to deliver the usual seasonal improvement in activity. “The property market hasn’t experienced an Autumn bounce this year as the lack of buyer activity continued in October with sellers attracting far fewer offers than they had hoped for.” He added that some sellers had little choice but to reduce their asking prices.
Flats under pressure
Jeremy Leaf, a north London estate agent and former RICS residential chairman, said the slowdown was especially noticeable in parts of the flats market. “In such a highly sensitive market, it is no surprise that prices have softened lately, particularly for overstocked flats.”
Jason Tebb, president of OnTheMarket, also reported tougher negotiations. “The continued softening in annual house price growth suggests needs-based buyers proceeding with their moves are price sensitive and negotiating hard.”
Hopper said the market remains active for buyers with longer-term plans. But he had a clear warning for vendors: “That longer horizon gives buyers a reason to proceed. But it does not give sellers a licence to overprice.”
