More than a third of homes in the South West had at least one price cut before being sold last year, according to new data that lays bare an overpricing crisis affecting the property market.

Amid stagnant conditions, 37 per cent of sellers in the region were forced to slash thousands off their asking price before reaching a sale, up from 8.2 per cent in 2023.

Dartmouth came second in the region for price reductions before sale with an average off 11.05 per cent equating to £60,928 being taken of the price.

On average, sellers in the South West reduced their asking price by £21,078 before eventually exchanging contracts, a drop of 4.6 per cent.

The data is part of the Property Markdown Index 2026, collated by leading cash-buying service We Buy Any Home using data powered by property insight specialists Tytl.

Elliot Castle, chief executive of We Buy Any Home, said the figures should be a wake-up call to sellers in the region.

“House prices surged in 2020 and 2021, and many homeowners expected this trend to continue.

“But demand has softened and anyone with a property for sale at the moment knows the reality - it’s difficult out there,” he said.

Research shows optimistic agents are taking instructions and letting vendors see the realities of the market themselves, which often means a huge impact in the eventual agreed sale price.

Every additional price drop costs the seller around £12,000 and adds up to 10 weeks if a property is reduced three or more times.

This delay not only increases costs, requiring sellers to continue paying the mortgage and utility bills, but also risks chain breaks and reduced buyer interest.

Overpricing affected all property types in the South West, although apartments were most vulnerable.

The trend continued across all price brackets.

Homes valued under £200,000 were slashed the most often at 38 per cent.

Mr Castle added: “Our research shows overpricing is now a very common, and costly, mistake. The first three weeks on the market are crucial. That’s when listings attract the most attention online and buyers who are waiting for something new are ready to spring into action. If you price too high, you miss that window. Price reductions also weaken your negotiating position. When buyers see a reduction they assume there’s further room to haggle. It’s time we said goodbye to optimistic valuations and instead listened to what’s really happening in the property market today.”

Tom Neall, COO of Tytl, said: “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.”

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

To find out the cost of a delayed sale to you, visit www.webuyanyhome.com/london/2026-property-markdown-index to try out the new online calculator.