House prices in majority of UK remain below pre-crisis levels

Hundreds of thousands of UK homeowners who bought property in 2007 are likely to be stuck in negative equity, despite today's property market showing double-digit house price growth.

Related topics:  Finance News
Rozi Jones
26th April 2016
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According to research from House Simple, today’s average property prices in more than half (53%) of UK towns and cities are still below average prices in 2007.

The North West has been the worst hit by post-recession negative equity, with four-in-ten of the top 20 negative equity towns and cities located in the region.

The worst affected towns are Blackpool and Middlesbrough, where house prices are still almost 30% lower than pre-crash highs. Blackburn and Liverpool are also in the top five worst affected towns and cities, with average house prices still 25% and 23% lower respectively than before the crash.  

Yorkshire and the Humber has also been hit hard, with a quarter of towns in the Top 20 list in that region. Average prices in Middlesbrough are still 28% below pre-2008 levels, while in Bradford and Hull, house prices remain 20% and 19% lower.

House price recovery in the South has been much stronger than the north. London's average prices today are almost £200,000 higher than 2007 levels.

Sale and Stockport in the North West, where house prices now average £252,203 and £206,368 respectively (25% and 22% more than 2007), buck the trend in the region; they’re the only towns outside the South of England in the top 20 towns and cities where house prices have more than recovered to pre-recession levels.

Alex Gosling, CEO of HouseSimple, commented:

“London homeowners have watched as their properties have risen in value substantially since 2008 but, thousands of people around the country have had to put their lives on hold, unable to move because they are trapped in negative equity.  

“Unfortunately, the North of England has been slower to recover losses suffered during and after 2008. And anyone wanting to relocate for work or family reasons faces a less than appealing choice, either making a loss on the sale of their property or staying put and waiting until the price of their house at least recovers to the price they paid.

“There is light at the end of the tunnel with prices now climbing across the country, and that should help bring many more homeowners out of negative equity. However, for people living in towns like Blackpool and Middlesbrough, it’s going to take some time before prices come close to 2007 levels.”

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