Home » Uncategorised »
House Prices Still Struggling to Recover in Half of UK Towns and Cities
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Average house prices in half of UK towns and cities are still struggling to recover to their pre-financial crash levels of 2007, according to new research.
Data from Land Registry analysed by online estate agent HouseSimple shows that property prices in 53% of towns and cities in the UK had still failed to recover between February 2007 and 2016, particularly in the north. This means that many homeowners with a mortgage could be in negative equity.
House Prices Still Struggling to Recover in Half of UK Towns and Cities
HouseSimple examined 75 major towns and cities across England and Wales, finding that 17 of the 20 most affected areas are in the north of England. The region most hit by post-recession negative equity is the North West, with four in ten of the top 20 towns and cities in this part of the country.
The worst hit towns are Blackpool and Middlesbrough, where house prices are now almost 30% lower than their pre-crash levels, at £77,317 and £77,024 respectively.
Blackburn and Liverpool are also in the top five worst affected areas, with house prices still 25% and 23% lower than before the crisis.
The top 20 worst affected towns and cities are as follows:
[table id=9 /]Yorkshire and the Humber was also badly affected, with a quarter of towns in the top 20 list in that region. The average price in Middlesbrough is 28% below its pre-2007 peak, while in Bradford and Hull, values are 20% and 19% lower.
Contrastingly, the average London property price has soared by 52% over the same period, from £339,511 to £530,368.
Homeowners in Winchester have also seen substantial growth, with prices up by 44.2% since 2007, from £310,089 to £447,046.
HouseSimple’s Alex Gosling comments on the figures: “London homeowners have watched as their properties have risen in value substantially since 2008, but thousands of people around the country have had to put their lives on hold, unable to move because they are trapped in negative equity.
“Unfortunately, the north of England has been slower to recover losses suffered during and after 2008. And anyone wanting to relocate for work or family reasons faces a less than appealing choice, either making a loss on the sale of their property, or staying put and waiting until the price of their house at least recovers to the price they paid.”1
1 http://www.whatmortgage.co.uk/news/hundreds-thousands-home-owners-still-stuck-negative-equity/
