House sales in Leeds and across Yorkshire fare worst nationally for the number of homes sold at a loss since 2007, with 48 per cent of owners forced into negative equity, new research shows.
The average cash shortfall for sellers nationally is £24,430, according to recent Land Registry figures.
Four in 10 homes have been sold for a loss in England and Wales since 2007, while more than half made a profit, research found today.
Almost three-quarters, 71 per cent, of houses sold in London during this period made a profit despite the tough economy, compared with less than half in Yorkshire and the Humber, the North and the East Midlands, shared equity firm Castle Trust found.
“It is not all doom and gloom,” says independent estate agent Waite and Co, based in Horsforth, who says demand for family homes in the popular West Leeds suburb remains constant.
Estate agent Emma Westerman, of Waite & Co, added: “In certain areas like Horsforth, where there are excellent schools, there is a constant demand for family homes. There are some homes such as new build flats, and I cannot speak for other areas of the city, which are not selling so well.
“There has sadly been an increase in repossessions, where people cannot afford to pay their mortgage. I wouldn’t say it is the worst of times right now but we cannot predict how the future market is going to be.”
Of the 41 per cent of homes sold for a loss across the country, the average shortfall was £24,430, according to the firm’s analysis of Land Registry figures.
Over the same period, 56 per cent of homes were sold for an increase on the original amount the seller paid, making an average sum of £45,199.
The regional breakdown for house sales between January 2007 and January 2013 for Yorkshire and Humber, with the percentage of homes which sold for a loss was 48.2 per cent; followed by those which made a profit 48 per cent and the percentage of “break even” transactions were 3.8 per cent. Click here to register and have your say on the stories and issues that matter to you