Middle Britian hardest hit by house price falls
Insurance company, AXA, is predicting that Middle Britain will be hardest hit by the downturn in the housing market, in terms of property values.
Middle Britain is not necessarily Middle Class and according to AXA’s Financial Task Force only 20% of all UK households fall into the category.
The insurer recently defined the term as families that earn an average of £62,000 a year, own their own home, have at least two cars and live in London, the South East or East of England.
According to research by AXA and the Centre for Economics and Business Research, the value of the average Middle Britain property could fall 18% this year, taking £40,000 off the value of the typical home.
By comparison, the research predicts that the value of the average UK home will only fall by 12.8% during the period.
The areas with the highest concentration of Middle Britons are Richmond upon Thames, Windsor, Maidenhead and Wokingham and the report concludes that many risk going into negative equity, especially those who bought houses after March of this year.
However, Middle Britain property values are likely to recover quickly in the event of a severe market downturn and a recession because they are located in regions where the wider UK economy is resilient.