9:29 AM, 19th May 2021, About 2 years ago 3
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%|
|Yorkshire and the Humber||585||14%||£93,864||£182,220||52%|
|West Midlands region||350||8%||£162,550||£215,451||75%|
|East of England||102||2%||£219,610||£306,346||72%|
|Sources||Gov.uk (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.”