Repossessed homes suffer 30% price hit
The latest research from House Buyer Bureau reveals that there are almost 1,500 repossessed homes listed for sale on England’s housing market, with the largest numbers located in the South East and North West.
House Buyer Bureau analysed England’s housing market to identify how many repossessed properties are currently for sale, where they are located, and how their market value is impacted by the fact that they have been repossessed.*
The analysis reveals that there are an estimated total of 1,442 repossessed homes on today’s housing market. The largest concentrations of these properties are found in the South East and North West regions, each of which is home to 18% of the national total. Elsewhere, the East of England accounts for 14%, followed by Yorkshire & Humber at 11%.
Further analysis by House Buyer Bureau reveals that when a repossessed home is listed for sale, it suffers a significant price shock.
The average price offered for a repossessed property in England stands at an estimated £177,157. This is -30.4% below the wider national average house price of £254,460.
In London, repossessed homes suffer the biggest price shock, with the average offer price coming in at -37.9% the capital’s wider average. In the South West, the average price difference is -32.9%.
This is followed by Yorkshire & Humber (-31.7%), the North West (-31.2%), and West Midlands (-30.1%)
Managing director of House Buyer Bureau, Chris Hodgkinson, commented: “Behind every repossessed property is a homeowner who has found themselves in a difficult financial situation, often after circumstances have made it impossible to keep up with their mortgage repayments. It’s important to remember that this is not an unusual or shameful situation, and with financial pressures continuing to affect households across the country, it can happen to more people than we might think.
What these figures also demonstrate is the potential financial cost of allowing a property to reach repossession. With repossessed homes currently being marketed at an average discount of more than 30% compared with the wider market, and by almost 38% in London, homeowners facing financial difficulty should consider their options as early as possible.
Selling a property before repossession can give a homeowner greater control over the process and, importantly, the opportunity to use the proceeds to help address their outstanding financial commitments. A quick sale can be particularly useful where time is critical, although the right option will depend on the individual circumstances of the homeowner.
The key message is not to ignore the problem or wait until repossession is inevitable. If mortgage payments are becoming difficult to maintain, seeking advice early and understanding all of the available options could make a significant difference to the outcome.”
Data tables and sources