Research suggests nearly 1,500 repossessed properties on market
There are nearly 1,500 repossessed homes listed for sale in England, but new research shows that when they sell it’s generally at around 30% less than average.
The research, from House Buyer Bureau, shows an estimated 1,442 repossessed homes for sale across the country, mostly concentrated in the South East and North West regions, which each count for 18% of the national total. The East of England accounts for 14%, followed by Yorkshire & Humber at 11%.
Meanwhile, the average price offered for a repossessed property in England is an estimated £177,157, -30.4% below the wider national average house price of £254,460.
However, the price difference is most significant in London, where the average offer price is -37.9% below the capital’s wider average, while in the South West, there is a -32.9% difference in average prices. This is followed by Yorkshire & Humber (-31.7%), the North West (-31.2%), and West Midlands (-30.1%).
The financial cost of repossession
Chris Hodgkinson, managing director of House Buyer Bureau, said: “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.”
He said that selling a property before repossession can give a homeowner greater control over the process, as well as the funds to help address their outstanding financial commitments.
