Maybe if you price by £25 / £50k under that strategy can work. Setting price at £150k under sale price, I think you surely end up deterring bidders who feel nervous about going that far above valuation.
If I'm looking at the right house (on trading places?) it seems the last one on that road sold for 875k, so the pricing choice doesn't seem completely unreasonable. Someone's completely lost their head - interesting to see what the mortgage company makes of it.
Maybe if you price by £25 / £50k under that strategy can work. Setting price at £150k under sale price, I think you surely end up deterring bidders who feel nervous about going that far above valuation.