Some sellers have had to reduce prices for homes as buyer demand begins to dry up.
Over the past few years there has been an extremely high demand for homes, with many selling way over the asking price. However, with factors such as the cost of living crisis impacting almost everyone's finances as well as a more stabilised supply-demand rate, overpriced houses are having to drop their rates.
Data from Zoopla shows that 6.1 percent of UK homes for sale have seen a price reduction this year. The property experts say that this is an upward trend and is the highest level of reduced prices since before the pandemic.
The experts say that this doesn't necessarily mean that house prices are likely to fall across the board, but it does mean that sellers should be cautious when pricing their house. They will have to make sure that the price is right in order to ensure a sale.
This comes as the Bank of England last week hiked its base mortgage rate to 2.25 percent - its highest level in 14 years - with analysts fearing they could go as high as six percent next year. In an attempt to alleviate stress on some buyers, the UK government rose the threshold for stamp duty - a type of tax you may have to pay if you buy a home - to £250,000, or to £425,000 for first-time buyers.
In Scotland, stamp duty has been replaced with a Land and Buildings Transaction Tax (LBTT), which was introduced in 2015. The tax cut measures have not been introduced in Scotland, with the Scottish Government saying that it will set out its plans as part of the normal budget process.
Meanwhile, renters in Scotland received some support earlier this month when a rent freeze was announced. There is also a moratorium (ban) on evictions until at least March 31, 2023.
However, recent research by the Joseph Rowntree Foundation (JRF) found that almost a third of Scots who rent their homes were already struggling to make payments before the cost of living crisis.
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