New research has revealed that the gap between property asking and selling prices is narrowing, further indicating that value is returning to the UK housing market .
According to the Royal Institution of Chartered Surveyors (Rics), almost 60 per cent of surveyors said the difference between what prospective homebuyers are willing to pay and what homeowners are willing to sell for is reducing, with homes selling for an average of 11 per cent below their asking price.
The north of England seems to be the worst affected, with sellers on average accepting offers at 74 per cent of the asking price, compared to sellers in Scotland who on average are achieving sales at around 93 per cent of the asking price.
The news comes after Halifax and Nationwide both recently reported price rises during May, while other figures have shown that buyers are continuing to return to the housing market, tempted by record low interest rates and house price falls.
Brigid O'Leary, senior economist at Rics, commented: "The improvement in sentiment that has been captured in recent housing market surveys is reflected in a narrowing in the gap between asking and selling prices."
"This is particularly interesting given that recent reports from Rightmove suggest that asking prices have been relatively stable since February."
"As new instructions continue to decline, a lack of supply is providing some support to house prices and that has helped to close the gap."
However, economists have warned that the housing market will not recover quickly and that prices are still likely to fall further.
O’Leary added: "While the pace of the downturn may be easing, the housing market will still be challenged by an uncertain economic backdrop, the threat of rising unemployment and continued restrictions on mortgage finance ."
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