This region accounts for nearly one in five repossessed property listings
The high cost of homeownership in the South East could make the region the nation’s repossession hotspot as rising inflation and interest rates present further economic instability in the year ahead, property purchasing specialist HBB Solutions said.
Its research found that the South East is currently home to the highest number of repossessed homes in the UK.
The region currently accounts for 19% of all repossessed property listings, with Yorkshire and the Humber also ranking high at 16%, and the North East the only other region to hit double figures at 10%.
“The South East has been one of the best performing regions for house price growth throughout the pandemic and only London boasts a higher average house price,” Chris Hodgkinson, managing director at HBB Solutions, said.
“However, with a string of interest rates rises in quick succession and inflation hitting a 40-year high, it certainly seems as though economic instability is starting to bite, with the region currently home to the highest level of repossessed homes on the market.”
At just 4% each, London and Wales are home to the lowest level of repossessed properties for sale.
However, when it comes to the discounted price of these repossessed properties when comparing the offers being made to the wider value of homes in the region, the North West presents one of the lowest discounted rates for a repossessed property.
Repossessed properties in the region are receiving an average offer of £125,394 and while this is -14.4% below the wider regional average, it’s the second most marginal discount behind the West Midlands (13.7%).
In this respect, it’s the North East that ranks first, where the average offer on a repossessed property sits at £84,732, 30.5% below the average property value in the region.
Hodgkinson said that many buyers have borrowed well beyond their means while interest rates remained at record lows, but with monthly mortgage costs now climbing, they have found that they can no longer afford to continue.
“Having your home repossessed is a life altering experience and one that many will try to avoid until it’s too late. But it’s an unfortunate reality in many cases, and you are always better off selling up beforehand to ensure your home commands the very best price to help clear the money owed,” he pointed out.
“By utilising a property buying specialist, you can ensure a good balance between the two to avoid the distress caused by having your home repossessed,” he added.
