40 per cent of homes sold for a loss since financial crisis
Average shortfall is 11% of the cost of the house
February 28, 2013
New Land Registry figures show that over 130,000 homes have been sold at less than they were bought for since prices peaked in 2007. It has been revealed that the average loss was 11 per cent of cost of the home which amounts to £24,000 per household. Over the same period almost 180,000 homes were sold for an average profit of £45,199.
The North has suffered the largest slump in house prices and so it is no surprise that it is here where the highest proportion of homes have been sold at a loss. Across the region just under half of all homes sold since prices peaked have been sold at a loss. This is compared to London where only a quarter of households suffered the same fate.
Before the financial crisis selling for a loss was almost unheard of. Since 1995 92 per cent of all homes sold have made a profit as prices steadily rose.
Sean Oldfield, chief executive officer of Castle Trust, said: “Since the downturn, over 130,000 families have made a loss on their home placing them under enormous financial and emotional pressures. When you take into account the costs associated with moving home, from stamp duty to solicitor’s fees, this situation becomes even worse.”
Are you confused by the mass of house price predictions that we are bombarded with on a daily basis? We are creating a House Price Watch produced once a month to sum up all the various indices. It will be your one-stop-shop for all your house price news! Sign up to our newsletter to keep up with when the first one will be published