The North West is a repossession hotspot
There were 1,464 repossessions in the North West in the past 12 months, the most of any region, research from home buying platform Yes Homebuyers has found.
The North East (1,044) and Yorkshire and the Humber (1,029) also rank high with over 1,000 properties being repossessed in the last year.
In contrast, just 162 homes have been 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 of homes repossessed.
Matthew Cooper, founder and managing director of Yes Homebuyers, said: “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 as a result.
“The real sting in the tail is that this often incurs more costs and the value of your home is significantly reduced during the repossession sale process. This means far less of your debt is covered compared to selling in the regular market.
“Homebuying platforms can offer a lifeline in these situations, allowing those in financial hardship to sell quickly in order to pay off their outstanding finances while maintaining the final say in the sale of their hard-earned bricks and mortar asset.
“Luckily, only a small segment of those we see selling via Yes Homebuyer are doing so out of financial desperation. However, for those that find themselves with little other choice, we can provide a higher offer than they would see via a repossession sale and we can also complete in a very short time period so that they receive the funds quickly.”
The real salt in the wound of a property repossession is the price the property sells for, with those seeing their homes repossessed sold for far lower than they may otherwise have secured by selling themselves.
In this respect, Wales is the worst region to have a home repossessed with the average repossession selling for just £86,859; just 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 (60%), Yorkshire and the Humber (62%) and South East (68%) also seeing repossessed properties selling for less than 70% of market value.