Real house prices have still not recovered from the property crash a decade ago, according to new data.
After adjusting prices for inflation, 58% of wards in England and Wales are still below their pre-crash levels, with Wales, Yorkshire and the Humber, the North East and the North West all currently 10% lower than 2007.
Wales is particularly badly affected with 90% of council wards recording lower average house prices than before the recession.
Real terms rises in prices have been mainly concentrated in London and the South of England, though these areas have seen prices stagnate in recent months.
Lucian Cook, director of residential research at Savills, said; “A lot of markets in the North of England and Wales have struggled to recover from the post-credit crunch downturn.
“They haven’t had the underlying strength of in London to create population pressure and therefore there isn’t the same disconnect between supply and demand.”
Cook predicted that situation would deteriorate for homeowners, with prices struggling to rise.
He said; “Over the course of the next two years, given the amount of underlying economic uncertainty, it’s difficult to see strong house price growth anywhere across the UK.”
The stagnant housing market in the UK will mean many homeowners will find themselves trapped in negative equity, meaning the value of their property is less than the outstanding value of the mortgage on it.
This can lead to severe financial difficulty if monthly mortgage repayments become unaffordable, the mortgage is interest only or the borrower finds they need to move.
At Negative Equity UK, however, we’re property debt experts. In September alone we wrote off a total of £1,287,323 of unaffordable mortgage debt for our clients.
Whatever your circumstances, the first step to dealing with your property debt is to contact Negative Equity UK for an initial free, no obligation consultation with one of our advisors.