New research published by online estate agents Housesimple.com has revealed that hundreds of thousands of homeowners across the UK, mostly in the North of England, are trapped in negative equity a decade after the crash in 2007.
Housesimple compared house prices in June 2007 with prices in June of this year in more than 60 major towns and cities across England and Wales.
They found that in over a quarter of the towns and cities surveyed, 28%, average property prices have still not recovered to their 2007 levels.
The worst affected areas included Blackpool, where prices are still 15.3% lower than in June 2007, Sunderland, -13.3%, Middlesbrough, -9.7%, Preston, -8.1%, and Stockton-On-Tees, -5.7%.
More than a third of the towns and cities where property prices have still not recovered from the crash are in the North West of England, with the North East and Yorkshire and Humber also badly affected.
The figures for the North of England are in stark contrast to the South, where house prices in London have risen by 69% on average in the same ten year period, while prices in Cambridge have followed the Capital, rising by 64.5%.
Alan Gosling, CEO of Housesimple.com, said; “It must be galling for anyone who bought a property ten years ago, at the top of the market, and are sitting in a home that is still worth less today than it was when they bought it pre-2008.
“Worse still, any hope they have of drawing a line under their misfortune, and moving on, is most likely on pause as selling up would mean losing money. Finding the funds for a house deposit is difficult enough without having to cover losses on a house sale as well."
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