Source: Zoopla analysis, via The Guardian. Calculations and chart by author.
According to analysis reported by The Guardian, statistics collected by Zoopla show that four in five leasehold flats for sale in England have not sold after being on the market for six months. The overall average for England was 80.5%, with an even higher 87% rate for flats in London alone. In second and third place, the figures stood at 85% for the South East and 84% for the East of England, respectively.
The big question is whether the flats are overpriced or not.
Zoopla's statistics reveal that the housing market is moving towards buyers. There are 5% more homes for sale compared with last year, while sales have dropped by 6%. House-price growth is now at 0.9%.
Other statistics from Rightmove strengthen the same argument. Average asking prices dropped by 2% in August, the biggest drop in August over the last eight years.
The issue of supply is further complicated by service charges, leasehold issues, mortgage constraints, building repairs, among other issues. The Guardian quotes several cases of individuals who could not sell their flats despite reducing the asking price.
However, this does not imply that the housing market in the UK is collapsing. Certain regions still have high housing demand. There has also been a 7% increase in searches for homes compared with last year.
However, the trends could be changing.
It is important to understand that the asking price is not a valuation. It is simply the figure a seller hopes someone will pay.
This means that since 80% of the flats are unsold after six months, buyers may be telling an important point to sellers.
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