Many homeowners refuse to drop property prices

Over recent months property prices in the UK have been increasing slightly, but over the past year and a half property prices have plunged with the UK experiencing a dire property slump.

Although property prices have been increasing slightly they are much lower now than they were at their peak in October of 2007.

However, officials have said that some homeowners are not doing themselves any favours when trying to sell because they are refusing to lower their property prices.

According to the report over one third of homeowners that are trying to sell their homes in the current difficult climate are refusing to lower their property asking prices, even though property prices are said to have fallen by around 20 percent since their peak and are now back at levels that were last seen in 2004.

The research was carried out by the Cooperative Bank, and officials from the bank said that many homeowners refuse to acknowledge just how deeply their property values have been affected.

The study revealed that around 35 percent of homeowners would refuse an offer that was below their asking price and would instead hold out for at least their asking price despite the current climate in the property market.

Officials also fear that reports on house price rises or a slowdown in house price falls will lead to an increasing number of property sellers refusing to budge on their asking price.

The report said that this rising trend amongst property sellers was leading to an increasing gap between what homeowners expect and what potential buyers are prepared to offer, as only 12 percent of respondents to the survey said that they would consider paying the full asking price for a property.

Tags: housing market, property prices







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