| Town/City | Region | Average price 2007 (£) | Average price February 2016 (£) | % difference between 2007 & Feb 2016 prices | |
|---|---|---|---|---|---|
| 1 | Blackpool | North West | £109,581 | £77,317 | -29.4 |
| 2 | Middlesbrough | Yorkshire & the Humber | £107,603 | £77,024 | -28.4 |
| 3 | Sunderland | North East | £115,654 | £86,219 | -25.5 |
| 4 | Blackburn | North West | £94,269 | £71,034 | -24.6 |
| 5 | Liverpool | North West | £122,392 | £94,244 | -23 |
| 6 | Bradford | Yorkshire & the Humber | £120,538 | £96,693 | -19.8 |
| 7 | Bolton | North West | £115,789 | £93,448 | -19.3 |
| 8 | Hull | Yorkshire & the Humber | £87,848 | £70,914 | -19.3 |
| 9 | Doncaster | Yorkshire & the Humber | £116,762 | £95,016 | -18.6 |
| 10 | Stoke-on-Trent | West Midlands | £89,062 | £72,490 | -18.6 |
| 11 | Gateshead | North East | £118,303 | £96,805 | -18.2 |
| 12 | Stockton-on-Tees | North East | £134,514 | £111,158 | -17.4 |
| 13 | Preston | North West | £134,514 | £111,158 | -17.4 |
| 14 | Rotherham | Yorkshire & the Humber | £120,453 | £101,529 | -15.7 |
| 15 | Newport | Wales | £139,529 | £117,982 | -15.4 |
| 16 | Rochdale | North West | £127,085 | £107,685 | -15.3 |
| 17 | Wolverhampton | West Midlands | £122,943 | £105,102 | -14.5 |
| 18 | Southport | North West | £182,722 | £156,743 | -14.2 |
| 19 | Newcastle-upon-Tyne | North East | £140,191 | £122,451 | -12.7 |
| 20 | Salford | North West | £115,766 | £101,281 | -12.5 |
| Source: HouseSimple.com | |||||
Hundreds of thousands of homeowners still trapped in negative equity with their house prices stuck below 2007 levels
04-26-2016
- Despite soaring house prices in the South East of England, many homeowners still trapped in negative equity
- 53% of towns and cities in Britain are still below 2007 values
- Out of 75 major towns and cities, 17 of 20 most affected are in the North
By Myra Butterworth For MailOnline
It may seem impossible to believe given the headlines about house prices soaring in some parts of the country, but hundreds of thousands of homeowners are still trapped in negative equity, new research has revealed.
It claimed that the average price of a home in 53 per cent of towns and cities in Britain is still below 2007 values. That has left some people who bought near the top of the market in those areas in negative equity - with mortgages larger than their home's value.
The findings by estate agent HouseSimple.com suggested that while London prices have climbed an eye-watering 56 per cent since 2007, it is not the same picture across large swathes of the country - particularly the North of England.
The average price of a home in 53 per cent of towns and cities in Britain is still below 2007 values
The research looked at 75 major towns and cities in England and Wales, and found that 17 of the 20 most affected are in the North of England.
The North West was the worst hit with 40 per cent of the top 20 negative equity towns and cities in the region.
The worst affected towns are Blackpool and Middlesbrough, where house prices are still almost 30 per cent lower than before the credit crisis struck.
House prices have recovered much better in the South, particularly in London where values are almost £200,000 up on average compared to 2007 levels.
Property prices in the commuter towns of Winchester and Stevenage have also proved to be resilient, up 44 per cent and 39 per cent respectively.
Almost 1.5 million property transactions were completed in 2007 when property prices reached peak levels, just before the height of the credit crisis in 2008.
Property prices in Winchester have proved to be more resilient, up 44 per cent since 2007
Sale and Stockport in the North West have bucked the trend, rising 25 per cent and 22 per cent since 2007.
They are the only towns outside the South of England in the top 20 towns and cities where house prices have more than recovered to pre-recession levels.
David Hollingworth, of mortgage brokers London & Country, said: 'It's easy to assume that negative equity is no longer an issue given the improved activity levels, since the credit crisis caused the housing market to stall.
'Much will depend on the timing of the purchase but some homeowners who bought at the peak may still find that recovery hasn't been sufficient to erase the cloud of negative equity.
'These figures again underline the multi-speed nature of house prices in the UK and just how significant the regional variation can be. That said, negative equity only becomes a major problem if the property needs to be sold. As long as the mortgage remains affordable the owner can stay put and hold out until a combination of rising prices and erosion of the mortgage takes them out of any potential negative equity.
'With mortgage rates extremely low at the moment, taking the opportunity to overpay could help to cut the mortgage balance more quickly which can only improve their options in the future.'