New region takes the top spot for number of repossessed properties

The property purchasing specialist says the high cost of homeownership in the region could see it cement its place as the nation’s repossession hotspot, as rising inflation and interest rates pose further economic instability for the year ahead.

Previous research by HBB Solutions revealed that the North West was the nation’s worst market for repossessed properties last year. Their latest research looks at the current market as it stands, revealing where is home to the highest number of homes listed for sale that have already been repossessed by the lender.

The research shows that the North West currently accounts for 15% of all repossessed properties listed for sale. While this does place the region third in the list, it’s the South East that is currently home to the highest level of repossessed homes listed on the market.

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%.

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 top, where the average offer on a repossessed property sits at £84,732, 30.5% below the average property value in the region.

Managing director of HBB Solutions, Chris Hodgkinson, commented: “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.

"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.

"This is no doubt down to the fact that many buyers will have borrowed well beyond their means while interest rates remained at record lows, but with their monthly mortgage costs now climbing, they’ve found that they can no longer afford to continue.