Estate agents have been accused of overpricing after research revealed that more than a third of all homes put up for sale last year needed at least one price cut before they sold.

A new Property Markdown index from quick-buy firm We Buy Any Home, highlights what it describes as an “overpricing epidemic” in Britain’s housing market.

The brand worked with property insight firm Tytl to analyse 887,882 completed home sales across England and Wales.

The research found 36.2% of all homes put up for sale last year needed at least one price cut before keys were handed over – up from 8.1% in 2023.

It found that vendors accepted an average of £33,597 less than their initial asking price.

Overpricing is stalling the market.

The analysis also warns that every additional price drop costs the seller around £12,000 and adds an extra 10 weeks if a property is reduced three times or more.

Elliot Castle, chief executive of Castle Property Group, (pictured), which owns We Buy Any Home, says: “We saw a consistent trend – homes frequently required one or two price reductions before a sale was finalised. Our goal was to determine if this was merely an isolated observation or a cross-market pattern.

“Working with Tytl, we were able to gather the data for England and Wales and the findings should be a wake-up call to the whole industry as well as homeowners looking to list their properties.

“The aim of sharing the report isn’t to discourage homeowners from selling, but to address the common issue of overpricing, which is currently stalling the market.”

Overpricing issues

Tom Neall, chief operating officer at Tytl, adds: “This report clearly shows the real challenges being faced on the property market, but there’s also subtler problems that overpricing creates.

“When a property lingers buyers grow suspicious and perceived value drops. The home becomes stale in the eyes of the market and no amount of subsequent price cutting fully restores that initial excitement a new listing generates.”

“This is exactly why getting an accurate read on the market from the outset is so valuable. Those using Tytl have a far sharper steer on local market conditions, which means they can price properties accurately from day one rather than discovering the true figure through weeks of costly trial and error.

“Those first few weeks are unforgiving, price right and the market responds, price wrong and you pay for it.”