Home sellers slash asking prices

The gap between asking and selling prices for houses has widened to as much as 12.5 per cent in some regions, as sellers are forced to accept increasingly lower offers.

Across the UK, houses are selling at an average of nine per cent below the advertised price, according to the Royal Institution of Chartered Surveyors (Rics).

In the north, vendors are accepting the lowest offers - averaging 12.5 per cent below the marketed price, the industry body said.

Simon Rubinsohn, Rics chief economist said: "With housing transactions currently at a 30-year low, many vendors are being forced to lower their asking prices to achieve a sale in an ever shrinking market or they are being forced to rent their property until the market picks up.

"The gap between asking prices and selling prices could widen in the coming months as the downturn in the economy becomes more visible. The London market could be adversely affected as employment in the financial sector drops off."

Vendors in the north-west, East Midlands, West Midlands and Wales are accepting offers averaging approximately ten per cent below but in London the figure stands at 8.5 per cent.

London has remained firmer than most as its diverse economy and large job market offers sellers more room for optimism.

Scotland has yet to be affected (where the gap is only 2.4 per cent) but price falls in this region have lagged significantly behind the rest of the UK and it is likely that the gap will widen in the coming months, Rics said.