Mortgages  

Value of repossessed property rising across UK

The arrears management firm said properties in London are selling for a 10 per cent premium, while in the South East the figure is 7 per cent.

In Wales and the West Midlands, properties are selling at par, while Scottish properties – which operate under a different sales system – are selling at 2 per cent below the lender’s estimated valuation.

Dave Ford, director of the The Charlbury Group, said: “This data shows that the housing market remains robust across the UK, with repossessed houses selling for an average of 5 per cent more across the UK as a whole.”

Article continues after advert

Jonathan Harris, director of London-based mortgage broker Anderson Harris, added: “By the time repossessed properties hit the market, prices have risen, so they are selling for more than the valuation.

“Of course, if prices were falling, the reverse would be the case, and the bank would lose money.”

UK sale prices for repossessed properties

Scotland

-2%

Northern Ireland

+2%

Northern England

+3%

East Midlands and East Anglia

+5%

Wales and West Midlands

0%

South West England

0%

South East England

+7%

London

+10%

Source: The Charlbury Group