Home sellers are being forced to slash their asking prices by 10pc or more as the market stagnates in the wake of surging interest rates.

A fifth of sellers are cutting prices by a tenth or greater, according to the property website Zoopla.

In London and the South East, the proportion of sellers accepting a discount on this scale rises to almost one in four.

The housing market has struggled in the wake of the cost of living crisis, which has forced the Bank of England to increase interest rates to a 16-year high. Mortgage costs have surged as a result.

However, Zoopla did find some reasons for optimism. Buyer demand has risen 12pc with the biggest increase in London, of 21pc.

Agreed sales have also increased across the country, up 13pc compared to the same time last year with sales rising in all regions. 

This indicates buyers and sellers are more aligned on pricing, according to Zoopla. 

Richard Donnell, executive director at Zoopla, said: “This improvement in activity will support sales volumes which, at one million, reached an eleven year low in 2023.”

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