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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”.

North/South Divide

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/CityRegionAverage Prices in 2007 (£)Average Price in February 2016 (£)% Difference between 2007 and February 2016 Prices
2WinchesterSouth East310,089447,04644.20
3StevenageEast Anglia207,765289,26539.20
4WarwickWest Midlands200,546278,39638.80
5BedfordEast Anglia190,938256,28234.20
6BrightonSouth East223,378298,65333.70
7BathSouth West314,896412,21130.90
8SloughSouth East181,994236,02329.70
9ReadingSouth East208,364270,00229.60
10SaleNorth West202,452252,20324.60
11OxfordSouth East242,896300,71723.80
12BristolSouth West181,588223,68823.20
13CanterburySouth East217,992266,62122.30
14EastbourneSouth East208,170254,58522.30
15StockportNorth West169,813206,36821.50
16WorcesterWest Midlands177,492208,62017.50
17Milton KeynesSouth East171,861201,08117.00
18CambridgeEast Anglia191,331223,83717.00
19ColchesterEast Anglia200,740234,68016.90
20LutonEast Anglia145,595169,18416.20

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.

For Independent Mortgage advice please contact us at Hoskin Mortgages for more information.

Clare Allen.

Hoskin Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority number 613005. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.


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