Repossessed homes are being marketed at prices around 30% below the wider housing market, new analysis suggests.
House Buyer Bureau estimates there are currently 1,442 repossessed properties listed for sale across England, with the South East and North West accounting for the largest proportions.
Its analysis puts the average price of a repossessed property at £177,157, some 30.4% below the £254,460 average house price used for comparison.
However, the figures compare different groups of properties rather than tracking the value of individual homes before and after repossession, meaning the difference cannot necessarily be attributed to repossession itself.
REGIONAL DIFFERENCES
The South East and North West each account for 18% of repossessed properties currently listed, followed by the East of England at 14% and Yorkshire & Humber at 11%.
London records the largest difference between repossessed property prices and the wider market, at 37.9%.
The gap stands at 32.9% in the South West, 31.7% in Yorkshire & Humber, 31.2% in the North West and 30.1% in the West Midlands.
EARLY ACTION
Chris Hodgkinson (main picture, inset), Managing Director of House Buyer Bureau, says: “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.
“What these figures also demonstrate is the potential financial cost of allowing a property to reach repossession.”
He adds: “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.”
