When Alan Murphy and his wife discovered a three-bedroom semi-detached house in Brighton, with its garden, garage, and potential for extension, they immediately envisioned it as their “forever home.” However, the £575,000 asking price seemed inflated given the property's need for extensive renovation. Instead of stretching their budget to meet the figure, the couple decided on a strategically lower offer, £35,000 below the asking price, which the seller accepted promptly. This successful negotiation not only secured the home but also freed up funds for necessary renovations, illustrating a growing trend among UK homebuyers to challenge asking prices when justified.
Across the UK, this kind of calculated negotiation is becoming more common. Property website Zoopla reports that, on average, homes now sell for approximately £16,000 below their listing price, reflecting a cooling in house price growth to just 1.3% year on year. The market has shifted from seller dominance to greater buyer power, partly due to changes in the wider economic environment. While sellers often price homes based on past market highs or the cost of recent improvements, driven by emotional attachment or “loss aversion”, buyers are now more diligent about valuations, factoring in current economic realities including the cost-of-living crisis and rising mortgage rates.
Experts note that pricing strategies remain influenced by both economic data and human factors. Christian Hilber, an economic geography professor at the London School of Economics, explains that during the housing booms of the mid-2000s, sellers regularly fetched above their purchase price, but today's tighter conditions mean valuations need recalibration. Estate agents play a key role in bridging this gap, often starting with an optimistic asking price to test market response before adjusting to realistic levels. Agents like Robin Edwards advocate for evidence-based pricing, relying on recent comparable sales and the condition of the property rather than algorithmic estimates alone.
On the buyer's side, estate agents recommend a respectful and well-substantiated approach to offers. Lowball bids risk alienating sellers, but an offer backed by facts, such as survey findings or visible repairs, can foster constructive negotiation. Human relationships also matter, as shown by recent buyers like Rowena Bower, who secured a £15,000 discount by building rapport with the sellers and bypassing the agent with a personal letter. Bower stresses the importance of honesty and respect in conversations, acknowledging that while buyers should be ready to accept a refusal, attempts at negotiation can still yield significant savings.
Market data from Zoopla and other sources underline a nuanced picture. While the average UK home price stands around £268,000, with a modest annual increase near 1.6%, sellers are increasingly willing to accept offers roughly 3% below their asking prices. Regions such as the North West show stronger price growth, driven by cities like Manchester and Liverpool, indicating regional imbalances in the housing market. Mortgage affordability improvements, allowing buyers to borrow up to 20% more in some cases, have helped reinvigorate demand, contributing to a slow but steady market recovery.
Nevertheless, this buyer-friendly environment may be temporary. Hilber warns that as confidence returns and the economy strengthens, the balance of power could swing back toward sellers, especially given the continued supply constraints. For now, however, buyers with thorough research, realistic expectations, and respectful negotiation tactics have a genuine opportunity to secure homes below the asking price, turning a potentially daunting market into one where, as the saying goes, “if you don’t ask, you don’t get.”
📌 Reference Map:
- [1] The Guardian - Paragraphs 1-8, 10-13
- [2] The Guardian (May 2025) - Paragraph 9, 14
- [3] Yahoo Finance UK - Paragraph 9
- [4] Morningstar UK - Paragraph 9
- [5] AJ Bell - Paragraph 9
- [6] Zoopla House Price Index - Paragraph 9, 14
- [7] Mortgage Solutions - Paragraph 9
Source: Noah Wire Services