November 1, 2022

The high cost of homeownership in the South East could make the region the nation’s repossession hotspot as rising inflation and interest rates present further economic instability in the year ahead, property purchasing specialist HBB Solutions said.

Its research found that the South East is currently home to the highest number of repossessed homes in the UK.

The region currently accounts for 19% of all repossessed property listings, with Yorkshire and the Humber also ranking high at 16%, and the North East the only other region to hit double figures at 10%.

In this respect, it’s the North East that ranks first, where the average offer on a repossessed property sits at £84,732, 30.5% below the average property value in the region.

Hodgkinson said that many buyers have borrowed well beyond their means while interest rates remained at record lows, but with monthly mortgage costs now climbing, they have found that they can no longer afford to continue.

“Having your home repossessed is a life-altering experience and one that many will try to avoid until it’s too late. But it’s an unfortunate reality in many cases, and you are always better off selling up beforehand to ensure your home commands the very best price to help clear the money owed,” he pointed out.

“By utilising a property buying specialist, you can ensure a good balance between the two to avoid the distress caused by having your home repossessed,” he added.

Original Article: Which Region is the Uk's Repossession Hotspot?