UK homeowners are being forced to cut the asking price of their homes by an average of £25,562 in order to sell, according to figures published by Zoopla.
More than a third, just over 35%, of homes marketed through the site have had their prices cut.
The data shows that homeowners in Salford and Manchester are being forced to drop their asking prices by 19% and 25% respectively.
Many properties in the North of England have never regained the value that they lost during the crash in property prices in 2007-08, leaving their owners in negative equity. For homeowners with outstanding mortgage debt, a further 25% reduction in sale price could lead to serious financial difficulties.
Howard Archer, chief economic adviser with the EY Item Club, predicted that the trend would continue into the New Year, saying that the market would remain challenging.
He said; “The fundamentals for house buyers are likely to remain challenging over the coming months with consumers’ purchasing power continuing to be squeezed by inflation running higher than earnings growth.
“Additionally, housing market activity is likely to be hampered by fragile consumer confidence and a limited willingness to engage in major transactions.”
He also pointed to the recent decision by the Bank of England to raise interest rates as a factor.
“While the increase in interest rates was just 0.25% [to 0.5%] and mortgage rates are still at historically very low levels, the fact that it was the first rise since 2007 could have a significant effect on housing market psychology.”
We can help.
If you’re struggling to sell a home you can’t afford, or you’re trapped in arrears or negative equity on your property, then we can help.
At Negative Equity UK, our team of property debt specialists offers a range of possible solutions based on your individual situation. Whatever your circumstances, the process starts with a case review. We will obtain all of the original documentation on your mortgage from your lender so we can assess your needs and work out the best way for us to help you.
We don’t adopt a one size fits all approach to helping our clients. Instead, we offer bespoke solutions based on your specific needs and circumstances.
Many people need to sell their house in order to deal with their debt. In this case, we can arrange a shortfall sale and negotiate with your lender in order to write off as much of the remaining debt as possible, leaving you with a much smaller amount left to pay.
In September alone we wrote off a total of £1,287,323 of unaffordable mortgage debt for our clients.
If you’re in arrears on your mortgage, or you’re trapped in a property in negative equity and you need to move on take a look at our reviews and contact us on 0161 631 2727 or fill out a contact form on our website and we will arrange a call back and start the process of dealing with your property debt.