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Bromley heads list of prime property discounts

Alex Johnson

487c4abbc1bc0e95c915d801f7bdf42d90918ed2 300x198 Bromley heads list of prime property discountsThe chances of finding a bargain on a prime property for sale in the UK  is far lower than in recent years, according to research from property website PrimeLocation.com.

The proportion of prime properties (those worth over £1 million) currently for sale that have been reduced in price since originally coming onto the market now stands at only one in five, down from 28% one year ago. The average discount on those properties that have seen a price reduction is currently 8.9%.

Bromley in South East London has the highest proportion of discounted million pound homes for sale with almost half (49.3%) of those on the market currently having been reduced to tempt buyers. Barnet and Rickmansworth round out the top three locations with the highest levels of reduced-price prime properties at 33.9% and 31.2% respectively.

At the other end of the scale, only 10% of Edinburgh’s prime properties currently on the market have been reduced in price to attract buyers. And the market for million pound homes in Guernsey and the Isle of Man appears strong with each having amongst the lowest proportions of discounted prime properties in the UK, at 12% and 13.6% respectively.

Some of the lowest levels of discounts on offer on prime properties are in London suburbs including Kingston upon Thames (4.2%), Northwood (4.6%) and Richmond (5.3%).  However, prime property owners in Newcastle and Oxford appear less confident about their original asking prices with the average discount on million pound Tyneside homes at 20.6% and in Oxford currently at 14.1%.

Lawrence Hall of PrimeLocation.com, said: “Anyone who thinks that property buyers at the top end of the market are less price sensitive is mistaken.  Even more so, because the numbers are so much bigger, prime buyers are always looking for the best possible deal.  And whilst there are less discounted properties on the market than in recent years, there are still some areas where prices have been reduced significantly and bargains are to be had.”

Mortgages at their most affordable for 14 years
Mortgage affordability is at its most favourable since 1999, with mortgage payments accounting for 27% of a new borrower’s income between April and June this year, according to new Halifax research. This is below the average of 36% recorded over the past 30 years.

Mortgage affordability has improved by 21 percentage points since reaching a peak of 48% of income in 2007  and there have been significant improvements in affordability in all local authority districts since 2007. Mortgage payments have fallen by at least a half as a proportion of average earnings in 24 areas.

Nonetheless, there remains a clear north/south divide. Mortgage payments are at their lowest as a proportion of disposable earnings in Northern Ireland (17%), Scotland (19%), Yorkshire and the Humber (22%) and the North West (23%). Payments are highest in relation to earnings in Greater London (36%), the South East (34%) and the South West (32%). The 10 most affordable local areas are all in northern Britain, while the 10 least affordable areas are all in the south.

Craig McKinlay, Mortgage Director, Halifax said: “The favourable mortgage affordability position is a boost for both those who already have a mortgage and those who are able to raise the required deposit to buy a home. Improved mortgage affordability has been a key factor supporting housing demand and is helping to stimulate the modest recovery that we are currently seeing.

“Significant numbers of would-be home-buyers and movers remain unable to enter the market due to higher deposit requirements than a few years’ ago and low, or negative, levels of housing equity. However, the recent figures showing 10,000 aspiring home-owners have already signed up to the Help to Buy scheme shows the potential of the Government backed schemes to continue to improve access to the market.”

Pictured above is a seven bedroom detached house for sale in Barnet Wood Road, Bromley on with John D Wood for £1,550,000, first listed in June for 1,800,000.

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