Asking prices for homes coming down as property market sticks

The average person has knocked 6.1 per cent off their original asking price, the equivalent of nearly 16,000. The reductions are being made in response to a shortage of buyers, as many people adopt a "wait and see" approach until the outlook for both the property market and the wider economy become clearer.

But sellers are continuing to come to the market, creating a mis-match between supply and demand and putting downward pressure on prices.

The group said many sellers were likely to have reduced their asking prices during the previous three months in an attempt to secure a sale before Christmas.

Nicholas Leeming, commercial director of Zoopla.co.uk, said: "For the past few months, asking prices have been somewhat out of kilter with what buyers are prepared or can afford to pay, but sellers are becoming increasingly realistic.

"The traditional New Year influx of properties coming to the market for sale will mean even more competition among sellers and many are keen to try to secure a buyer this side of Christmas and are lowering their expectation."

Half of all sellers in Swindon have reduced their asking prices at least once, as have 47 per cent of people in Norwich.

More than 40 per cent of sellers have also reduced the amount they are trying to get for their property in Northampton, Leicester, Poole, Birmingham, Bristol, Exeter and Coventry.

But the biggest reductions have been made by homeowners in the North, with those in Manchester slashing prices by 7.15 per cent. while those in Newcastle have reduced them by 7.13%.