North of England prices booming amidst highest repossession levels

North of England prices booming amidst highest repossession levels

9:29 AM, 19th May 2021, About 3 years ago 3

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With the current stamp duty holiday spurring a property market frenzy, house prices have boomed. The latest UK House Price Index shows that the North of England is leading the way, with both the North West (11.9%) and Yorkshire and Humber (10.9%) registering the highest rates of annual growth, while the North East (9%) isn’t far behind.

However, research from YesHomebuyers, has revealed the North of England has seen by far the most property repossessions since the start of the pandemic especially in the North West, in particular.

Against a backdrop of record house price highs and huge levels of buyer demand, not everyone has come through the pandemic unscathed. Since the start of the pandemic, 4,320 homes have been repossessed across England and Wales.

Most repossessions by region

The North West has seen the highest number of repossessions during the pandemic, accounting for 20% of the total number seen across England and Wales. The North East has also seen a large number of repossessions, accounting for 16% of the national total, while Yorkshire and the Humber ranks third at 14%.

Collectively, the North of England has accounted for 50% of all property repossessions seen across England and Wales during the pandemic. In contrast, the East of England has accounted for just 2% of pandemic repossessions, with the South West (6%) and East Midlands (7%) also seeing a low proportion.

The property price cost of a repossession

Traditionally, having your property repossessed would mean it selling on the open market for a far lower price. However, since the government bailed out the big lenders in the wake of the 2008 Credit Crunch, they have been under far greater pressure to prove that they have ‘Treated the Customer Fairly’ (TCF) by achieving the best price possible

Figures show that this price achieved varies across the country but on average, repossessed homes in England sell for around 77% of market value.

Location Pandemic Repossessions Percentage of All Repossessions Average Repossession Price Average House Price Resale % achieved via Repo Sale
England & Wales 4,320 100.0% £207,335 £268,291 77.3%
North West 881 20% £160,512 £184,351 87%
North East 684 16% £74,477 £138,370 54%
Yorkshire and the Humber 585 14% £93,864 £182,220 52%
South East 440 10% £292,259 £345,075 85%
London 387 9% £428,744 £496,269 86%
West Midlands region 350 8% £162,550 £215,451 75%
Wales 342 8% £120,940 £179,861 67%
East Midlands 281 7% £148,662 £213,967 69%
South West 268 6% £206,160 £279,242 74%
East of England 102 2% £219,610 £306,346 72%
Sources (Feb to Dec 2020 – latest available data) PropertyData UK House Price Index  

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented:

“The repossession of a home can be a very traumatic experience and although new guidelines are in place to ensure the lender achieves the highest price possible, it’s the last thing any homeowner wants to go through.

“Always, always communicate with the lender to let them know you’re doing everything possible and try and buy the time to get a normal sale done for the best price possible. This will put you in the best possible position to get a handle on any debt you owe, while providing the best possible foundations to move forward.”

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11:45 AM, 19th May 2021, About 3 years ago

We'd love to sell, as would tens of thousands of others, will the pillocks in Westminster who created the cladding remedial works funding scandal please do something and sort it out.

Hemant Shah

22:33 PM, 19th May 2021, About 3 years ago

I do not know where you getting the information about the price rise in the northwest of England.
The property prices are dropping and I could not manage to sell the apartment I bought a couple of years ago.
Please feel free to make comments
Thank you

Claire Smith

8:22 AM, 20th May 2021, About 3 years ago

Reply to the comment left by Hemant Shah at 19/05/2021 - 22:33
I think that you may find that house prices are increasing but apartments have dropped in value, even for ones without cladding. That is certainly the case in our part of the north west.

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