Hundreds Of Thousands Trapped In Negative Equity Due To Where They Live
Homeowners in the north of England remain stuck with homes worth less than the value of their mortgage while London property prices surge ahead.
According to the latest analysis by online estate agent House Simple, British homeowners are slowly escaping the mass negative equity that followed the 2008 economic crash. As Alex Gosling, House Simple’s chief executive puts it, “there is light at the end of the tunnel with prices now climbing across the country, and that should help bring many more homeowners out of negative equity”.
There is however a vast disparity in how quickly different regions are returning to their pre-crash heights. If you have owned a property in London between 2007 and February 2016, you will have enjoyed a rise in the average value of a property of 56%. Owners in the north of England have not been as lucky, with the area home to 17 out of the 20 towns and cities worst affected by the crash that are now facing the longest roads to recovery. The north west of England contributes 40% of the 20 areas with the highest rates of negative equity.
In total, 75 towns and cities were analysed, reporting the percentage change in the value of the average house from 2007 to February 2016. Of these, 53% where found to have current prices still lower than in 2007.
Blackpool and Middlesbrough performed the worst overall with current house prices nearly 30% below their 2007 mark. Alex Gosling admitted “it’s going to take some time” for these areas to “come close” to their previous worth.
Top 20 Performing Towns and Cities In The Housing Market
|Town/City||Region||Average Prices in 2007 (£)||Average Price in February 2016 (£)||% Difference between 2007 and February 2016 Prices|
|17||Milton Keynes||South East||171,861||201,081||17.00|
Sale and Stockport are the only towns outside the south of England to make it into the top 20, seeing 25% and 22% rises respectively.
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