There’s currently a 45% gulf between the average asking price of U.K. properties and the actual price those homes are selling for, according to a report Thursday by estate agent Emoov.
The average sale price in the U.K. is £226,906 (US$300,595), while the average asking price is almost double that at £414,359 (US$548,819).
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"In slower market conditions a seller's expectation is always likely to differ from what the market dictates and what a buyer is willing to pay," said Russell Quirk, founder and CEO of Emoov, in the report.
The overpricing is natural, Mr. Quirk said, due to sellers’ emotional attachment to a property. "While many will have to reduce their price to find a buyer this research doesn't suggest they have to do so by 45%," he added.
Almost every area of the U.K. is witnessing some level of discrepancy between asking and sold prices, the report said, led by South Gloucestershire, in South West England. The average sold price of £267,397 (US$354,435) in the area is 43% lower than the £470,117 (US$623,141) average asking price.
Inverclyde in Scotland is home to the second largest gap, with the average sales price 41% lower than the average asking price of £159,932 (US$212,004), according to the report.
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It’s followed by East Ayrshire, also in Scotland, where the sold price is £93,053 (US$123,350), 32% less than a property’s average price tag.
Nottingham, in England’s East Midlands, is home to the fourth largest pricing gap in the U.K. with a 31% difference between asking and sold prices.
There are also a few areas where the market is slightly outperforming seller expectations,
In the East Riding of Yorkshire, the average sold price of £176,318 (US$233,725) is 3% higher than the average asking price of £170,981 (US$226,651).
In Nottinghamshire, prices are 2% higher. The Orkney Islands and North Somerset, meanwhile, saw an average sold price 1% higher than the average asking price.