The market gap between the mortgage approved price of a buyer and the asking price expectations of a seller has increased to 34.1% across the UK
This is the largest gap we’ve seen since the third quarter of 2020.
To explain this simply – Emily is a buyer who has secured a mortgage for a property at around £271,000 but the price expectation from John the seller is over £363,000.
This is a considerable gap to bridge.
This suggests that not only do buyers like Emily have higher reservations due to the higher cost of borrowing, but sellers like John are yet to come to terms with a cooling market when setting their asking price.
This mismatch is also clear when analysing the gap between the average asking price and the average sold price. It’s not just expectations, it’s reality.
How do we bridge this gap?
People turn to auction for a number of reasons but there are certain advantages that assist with the connection of buyer and seller during these times.
So what are they –
- 90% of auction buys are cash – These purchasers are not reliant on mortgages, therefore, aren’t dis-swayed and dependent on finance
- Most auction investors are seasoned professionals. They are in the property game for the long term. Peaks and throughs of the market is something they will be used to.
- Connect UK Auctions market to the nation. The wider the audience, the greater the chance of a sale.
