As the autumn property market heats up, Zoopla, one of the UK’s leading property platforms, has issued a critical warning to landlords: avoid the temptation to overprice your property if you’re looking to sell this season. This advice comes at a time when the market is showing signs of cooling, and overly ambitious pricing could lead to prolonged sales times or the need for price reductions that could ultimately harm returns.
According to Zoopla, the current market dynamics suggest that buyers are becoming more discerning, particularly in the face of rising interest rates and economic uncertainty. The platform has noted a shift towards more realistic pricing as buyers are no longer willing to pay over the odds for properties, regardless of location or condition.
Daniel Austin, CEO and co-founder of ASK Partners, echoed Zoopla’s concerns while highlighting broader market trends: “Research suggests that the property market is not traditionally affected by general elections, but it is positive to see that the recent election has not had a negative impact. We are continuing to see a month-on-month rise in house prices, which is hopefully the sign of an upward trend developing for the rest of the year. The market certainly appears to be showing signs of resilience.”
Zoopla’s insight highlights the importance of setting a competitive price from the outset. “Landlords who overprice their properties are likely to see them sit on the market for longer, leading to potential financial strain, especially if the property is vacant during the selling period,” the platform warns. The company stresses that with the right pricing strategy, sellers can still achieve strong results, but the key is understanding the market’s current expectations.
Austin also pointed to the resilience of the broader property market, emphasizing the opportunities present for investors: “In the property investment world, rent values have seen sustained growth, positioning real estate as reasonably valued in comparison to gilts and presenting growth potential. In the realm of commercial real estate, we have seen values hit the bottom and confidence return. The market has picked up with opportunistic acquisitions of prime properties in prime locations.”
This warning is particularly relevant as the property market enters a traditionally busy period. With an influx of properties expected to hit the market, competition among sellers is likely to intensify. Landlords are encouraged to consult with estate agents and use online valuation tools to get an accurate sense of what their property is worth in the current climate.
Austin also touched on the potential future impacts of government policy on the market: “Everyone is waiting in anticipation of what the new government will do to drive construction of new homes and unlock the planning system, and it is likely that initiatives announced in the coming months will give the market a further boost.”
For landlords and property investors alike, Austin’s perspective offers a glimmer of optimism amid the caution from Zoopla. He concluded by outlining ASK Partners’ approach: “As a debt provider, we hope to support well-capitalised borrowers who understand their product and are looking at the best sites in prime locations with potential to add to their asset value. Following this strategy, we aim to bolster developers’ initiatives with the flexible underwriting approach that is necessary for navigating a changing market. This will enable us to continue to offer opportunities for the growing number of private individuals opting to invest in property debt.”
For more information on Zoopla’s market insights and to explore property valuation tools, visit Zoopla. As the autumn selling season approaches, landlords would do well to heed this advice and price their properties strategically to ensure a successful sale.
