News
26/08/09 - The Moving Market
35% of sellers not prepared to drop the asking price
With growing signs of consumer confidence in the housing market, new research from The Co-operative Bank mortgages uncovers a change in people's attitudes to the current housing market, revealing that a third of people (35%) are not prepared to drop their asking price at all to sell at the moment, whereas only one in ten would offer full asking price on the property they are looking to buy (12%).
The research also reveals a more positive outlook to the current market, with over half of people (54%) becoming more optimistic about the housing market recently, and a third of people (29%) stating that this optimism has started within the last month.
| Region | % people not prepared to drop asking price |
|---|---|
| 1. Scotland | 40% |
| 2. East Anglia | 39% |
| 3. North East | 39% |
| 4. Yorks and the Humber | 39% |
| 5. South West | 38% |
| 6. South East | 37% |
| 7. West Midlands | 35% |
| 8. North West | 34% |
| 9. Wales | 31% |
| 10. East Midlands | 30% |
The findings reveal that house sellers from Scotland are most likely to hold out for the full asking price (40%), whereas people from the East Midlands are the most likely to accept a lower asking price, with only 30% of sellers here not prepared to negotiate on the asking price.
John Hughes, Director of Retail Banking for The Co-operative Bank comments: “With much speculation about green shoots of recovery in the housing market, the findings do indicate that consumer optimism is starting to return, although there clearly still remains some way to go.”
The research also highlights what methods people are looking to use to make sure their house stands the best chance of selling in the current market. Just under half of people are repainting the house (49%) with other popular tactics including throwing in extras such as furniture (11%) and looking at selling via additional routes such as a private sale (10%).
However the study also uncovers some more unusual tactics sellers are employing, including sending away pets for viewings (10%), adopting feng sui layout techniques (5%), and borrowing a more expensive car to park in front for viewings (2%).
The research also shows a range of reasons for people wanting to move house at the moment. More than a quarter of people are looking for more space (27%), and one in five either just need a change (21%) or are finding that the next rung up on the ladder is much cheaper at the moment (20%).
| Why are you looking to move at the moment? | % of respondents |
|---|---|
| 1. Need more space | 27% |
| 2. Ready for a change | 21% |
| 3. Properties that are the next step up on the ladder are now significantly cheaper | 20% |
| 4. Starting / Expanding a family | 17% |
| 5. The market looks like it is starting to pick up | 13% |
| 6. Renting feels like throwing money away | 12% |
| 7. For a job / to improve my career prospects | 9% |
| 8. Looking to downsize | 8% |
| 9. To move nearer good schools | 7% |
| 10. Struggling to afford where I live now | 7% |
According to the data, most people are looking for a detached house (28%), with a semi detached house (26%), a flat (12%) and a terraced house (9%) the next most popular choices.
Ends
For further information please contact
Catherine Laycock / Alejandra Solis
The Co-operative Financial Services Press Office
Tel: 0161 903 3833 / 3808
Email : catherine.laycock@cfs.coop / alejandra.solis@cfs.coop
Follow us on Twitter: CFSpressteam
Notes to Editors
Research carried out in August 2009 by onepoll.com on behalf of The Co-operative Bank amongst a geographically representative sample of 3,000 adult respondents.
About The Co-operative Financial Services
The Co-operative Financial Services (CFS) is part of The Co-operative Group, which is the world's largest consumer co-operative with around five million members, over £14 billion turnover, and core business interests in financial services, food, travel, pharmacy and funeral care. The Co-operative Group has over 4,500 retail trading outlets.
Following the merger with Britannia Building Society on 1 August 2009, the new organisation is one of the largest and well diversified mutual businesses operating in both retail and corporate markets.
As part of The Co-operative Group, the new business will be characterised by its unique ethical and member reward policies and very high levels of customer advocacy.
The combined business has £70 billion in assets, 12,000 staff and nine million customers. It has over 300 high street branches, 20 corporate banking centres and a major presence in Manchester, London, Leek, Bristol, Plymouth, Skelmersdale and Stockport. There are also 1,000 face-to-face financial advisers throughout the UK.
It is the only mutual organisation that enables its members to earn financial rewards for the products they hold, as well as giving them the opportunity to have a say in how the business is ran.
