Buyers negotiate on price to achieve biggest discounts since 2018

More home buyers are negotiating discounts of 5% or more than at any time in the last 5 years.

Key takeaways

  • Rise in number of sellers accepting offers at more than 5% below asking price
  • Average discount off asking price is now 3.8% as buyers negotiate harder
  • A boost in supply of homes for sale is putting pressure on sellers to accept offers
  • But if mortgage rates settle at 6% buying power will be hit by up to 20%
  • This will further reduce house price growth as our predictions of 5% price falls look ever more likely

The UK housing market is seeing rising supply and more price discounts than at any time in the last 5 years, putting the power firmly in buyers’ hands.

Our House Price Index for June 2023 shows that 18% more homes were listed for sale in the last 4 weeks than the 5-year average.

This has led to sellers increasingly accepting offers below their asking price. Discounts now average 3.8% and we’re seeing the highest proportion of discounts of 5% or more since 2018.

However, the resilience of home buyers is set to be tested once again as mortgage rates edged towards 6% in recent weeks.

While the impact of the latest rate rises is yet to feed through to our data, our analysis suggests buying power could be hit by up to 20% if mortgage rates settle at 6%.

2 in 5 buyers get 5% or more off the seller’s asking price 

House Price Index June 2023: increase in sales with larger discounts to asking price

A key way we’re seeing a buyers’ market take hold is in the number and size of discounts from sellers.

Home buyers are negotiating on house prices and sellers are now accepting offers at 3.8% below asking price on average.

To put that into perspective, someone listing their house for sale at £250,000 is likely to agree a sale at £240,500.

But many buyers are negotiating harder and achieving even larger discounts.

42% of sellers are accepting offers of 5% or more off their asking price while 1 in 6 are selling at a 10% discount or more.

This is the highest proportion of sellers agreeing discounts of 5% or more since 2018. 

Find your new home

Last year, the average discount was 0% as sellers consistently achieved their asking price.

In 2020, discounts averaged 2.8% while in 2018 buyers could expect to get 3.0% off the asking price.

Here’s how the average 3.8% discount and a 10% discount work out for different property prices.

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