The number of prime properties on the market that have seen a cut in their asking price has fallen to its lowest level in three years, according to research from PrimeLocation.com.
The proportion of prime properties (defined as those worth over £1 million) that are currently for sale and have had their asking price discounted from its original level has fallen to 18%, down from 27% one year ago and at its lowest level since summer 2010. The average price reduction on prime properties across the UK now stands at 8.7%.
Rickmansworth in Buckinghamshire tops the list of places where the highest proportion of million pound homes are currently being offered at less than the original asking price with 48% of prime properties reduced in order to find buyers.
Meanwhile, only 4% of prime properties on the market in Guernsey have been reduced in price.
The smallest price reductions on £1m+ properties on offer in the market are to be found in Walton-on-Thames (4.3%) followed closely by Guildford (4.2%) showing that homeowners in these areas are currently less inclined to reduce their asking prices to attract buyers.
At the other end of the scale, prime homeowners in Bath and Edinburgh are less bullish and are reducing their expectations more than anywhere else in the UK currently.
Lawrence Hall of PrimeLocation.com said: “The prime property market is a law unto itself and one which has largely defied gravity in recent years, even during the recession. However, even the wealthiest areas have seen deep discounts in the past few years.
“But the drop over the past 12 months in the number of prime properties with reduced asking prices has been a significant one, indicating that at the top end of the market sellers are generally feeling a lot more bullish now than they were this time last year.”