Homeowners desperate to attract buyers have cut asking prices by an average of nearly £17,000 over the past fortnight, figures suggest.

Experts said that the cuts could indicate a dawning appreciation among homeowners that the housing market is in a dire state, prompting them to reduce their prices in the hope of securing a sale. House prices have fallen by more than 15 per cent since their peak in August last year, according to Halifax, and some experts say they could fall by a total of 35 per cent.

Recent reports suggested that sellers were refusing to budge, with some increasing their asking prices to offset discounts being demanded by bargain-hunting buyers. However, this trend has reversed, with some homeowners in the wealthiest parts of London cutting their asking prices by more than £100,000, according to Globrix, the property website.

Daniel Lee, director of Globrix, said: “Sellers are realising that if they want to sell in this market then they may have to accept an offer that they wouldn't have even considered six months ago.”

A spokesman from the Royal Institution of Chartered Surveyors, said: “It has become a buyer's market for those with money to spend. Chartered surveyors are reporting that some sellers are starting to reprice their properties to reflect the current market. The gap between asking prices and selling prices could narrow further in the coming months as the downturn in the economy continues.”

The Globrix survey, which collated information on sellers who have cut their asking price since since November 10, shows that the average UK asking price fell by 6.5 per cent, or £16,941. Sellers in Central London made more striking reductions, lopping 7.3 per cent off the price of their homes to lure buyers into making an offer.

For those living in fashionable areas such as Kensington and Chelsea and Westminster, this resulted in price cuts of more than £100,000, and sellers in Newham, East London, where housing is cheaper, dropped their prices by a more modest £11,213.

The fall in prices was reflected across the country. In Nottingham, for example, the average reduction reached 8.2 per cent, or £13,777, and Glaswegian homeowners desperate to move cut their prices by more than 6.5 per cent, or £9,041.

Recent figures show that activity in the housing market, which plunged to record lows in August, has picked up slightly as investors snap up bargain properties. But there are fears that first-time buyers — crucial to the health of the housing market — will not be able to take advantage of falling prices because mortgage lenders are refusing to grant home loans to those without a substantial deposit.

For sale, for less

Average cut in house asking prices since November 10

London £48,131 (7.3%)
Nottingham £13,777 (8.2%)
Birmingham £10,200 (6.5%)
Manchester £15,912 (7%)
Liverpool £9,358 (7.3%)
Glasgow £9,041 (6.5%)
Cardiff £15,547 (6%)