Areas of England Still Recovering from Housing Price Crash with Negative Equity

Unfortunate prospects have been announced for those homeowners who have purchased a property in the UK in 2007, with hundreds of thousands of such homeowners predicted to be hit with negative equity, in contrast to the strong growth presently being realised in the residential market.

In 2007, it has been reported that some 1.5m property transactions were undertaken as the prices of such properties hit peak levels, moments before the financial crisis experienced in 2008. And although the market itself has been seen to recover in recent times, it is still that case that the average property price in 50% of cities and town remain below those averages seen back in the peaks of 2007 (highlighted in research undertaken by HouseSimple).

Within London, prices have indeed risen by 56% from those figures in 2007, however it is the case that this level of success has not been seen in many other geographic areas around the country (Northern England representing one such area where 17/20 of those hit worst reside).

Most specifically, it has been revealed in HouseSimple’s research that the North West represents the area hit the most by negative equity, with 40% of those areas pinpointed in the worst-off 20 towns for negative equity all being in the North West.

Specifically, the towns hit the most are Middlesbrough and Blackpool, with housing prices still at a value almost 30% less than at the peaks before the crash. Blackburn and Liverpool area also reported to be 25% and 23% lower than pre-crash respectively, with Yorkshire and the Humber also hit hard (1/3 of towns being in the list of 20 also).

Of course, as can be seen with London, the South of England has enjoyed a far greater degree of growth, not solely limited to London itself, but far more widespread. As such, It is predominantly those homeowners in the north with which this news hits hard.


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BDC 317 : Jun 2024