In the last 12 months, the North West has seen the most property repossessions of all regions of England and Wales, a report revealed, adding that in some areas these homes are sold well below market value.
Home buying platform Yes Homebuyers said it used government data to investigate which areas of England and Wales rank as property repossession hotspots, as well as what percentage of market value homes are sold for once repossessed.
The North West was top of the list, with 1,464 properties repossessed in the last year. The North East (1,044) and Yorkshire and the Humber (1,029) also ranked high.
In contrast, just 162 homes were repossessed in the East of England in the last year, the lowest of all regions. The South West (439) and East Midlands (505) have also seen some of the lowest levels.
However, “the real salt in the wound” is the price these properties are sold for, with homeowners seeing their properties being sold for far lower than they may have secured by selling themselves, the report noted.
In this respect, Wales is the worst region to have a home repossessed, with the average repossession selling for just £86,859 ($115,215) — 50% of the current average house price.
The East Midlands isn’t much better, with repossessed properties selling for just 55% of current market value, with the North East, Yorkshire and the Humber and South East also seeing repossessed properties selling for less than 70% of market value.
Matthew Cooper, founder and managing director of Yes Homebuyers, urged home-owners in a financially dire situation to consider selling their homes before it comes to a point where their properties are repossessed.
“Falling behind financially and having to sell your home to cover outstanding debts is perhaps the hardest decision you will ever have to make. As a result, many of us fail to act and eventually face repossession of the property,” he said.
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