Property buying specialist, HBB Options, has revealed the place throughout the property market holds the unsavoury title of the nation’s repossession hotspot, in addition to the large loss in worth that these unlucky sellers face on the worth of their dwelling.
HBB Options analysed authorities information on the extent of properties to have been repossessed during the last 12 months, in addition to the worth they obtain because of this repossession and the way this compares to their worth within the present market.
The analysis reveals that throughout England and Wales there have been simply shy of two,500 properties repossessed during the last 12 months with an estimated market worth of £426m – and that’s simply their worth as a repossession, not their worth if offered within the present market.
With these properties going for a mean of £173,995 owners dealing with repossession are dealing with a lack of 40% in worth when in comparison with present market values, which equates to an enormous drop of £114,503.
The North West ranks because the nation’s property repossession hotspot by way of the sheer quantity of properties repossessed within the final 12 months at 495. The North East additionally ranks excessive on this respect (335) as does the South East (312), London (306) and Yorkshire and the Humber (289).
Nevertheless, by way of the full worth of properties repossessed, the excessive worth of property throughout the capital sees London rank high, with an estimated £120.2m value of property repossessed during the last 12 months. The South East follows with an estimated £89m in repossessed property, with the North West this time rating third at £48.7m.
Repossessed properties within the North West additionally obtain the bottom resale worth at a -51% low cost, though it’s owners within the South West that see the most important financial loss, with repossessed properties reaching £142,672 lower than their present market worth.
Managing Director of HBB Options, Chris Hodgkinson, commented: “A lot has been made concerning the meteoric property market increase that has materialised throughout the pandemic, however regardless of this buoyant bricks and mortar panorama, there are lots of who proceed to wrestle with the price of homeownership, a wrestle that some will finally lose.
The unlucky consequence is that their dwelling will then be repossessed and obtain a far decrease resale. In actual fact, our analysis reveals that on common, it is going to obtain lower than half what their dwelling might be value within the common market.
With rates of interest on the rise and the price of dwelling climbing sharply, homebuyers ought to assume very arduous concerning the monetary dedication they’re making and the way far they will stretch earlier than the month-to-month price of homeownership turns into an excessive amount of to deal with.”