The North West is the UK’s repossession hotspot

The North West ranks as the nation’s repossession hotspot in the past 12 months, property purchasing specialist HBB Solutions has revealed.

The region has seen 495 homes repossessed in the past 12 months, followed by the North East (335), South East (312), London (306) and Yorkshire and the Humber (289).

Repossessed properties are generally sold either through an agent or auction, while lenders typically prioritise selling them quickly.

As a result they tend to sell on the cheap.

With these homes going for an average of £173,995, homeowners facing repossession are facing a loss of 40% in value when compared to current market values, which equates to a huge drop of £114,503.

There have been just shy of 2,500 homes repossessed over the last year with an estimated market value of £426 million.

Chris Hodgkinson, managing director of HBB Solutions, said: “Much has been made about the meteoric property market boom that has materialised during the pandemic, but despite this buoyant bricks and mortar landscape, there are many who continue to struggle with the cost of homeownership, a struggle that some will ultimately lose.

“The unfortunate consequence is that their home will then be repossessed and achieve a far lower resale. In fact, our research shows that on average, it will achieve less than half what their home could be worth in the regular market.

“With interest rates on the rise and the cost of living climbing sharply, homebuyers should think very hard about the financial commitment they are making and how far they can stretch before the monthly cost of homeownership becomes too much to handle.”

Repossessed homes in the North West achieve the lowest resale value at a -51% discount, although it’s homeowners in the South West that see the largest monetary loss, with repossessed homes achieving £142,672 less than their current market value.

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