Research shows losses made on property since 2006

| June 22, 2011 | 0 Comments

According to research from property website Zoopla, around 80% of properties acquired since 2006 are now worth less than their purchase price.

However, 89% of homes bought since the housing market peaked in 2007 are also worth less than homeowners paid for them with the problem particularly bad in the North East.

In the North East, the average property was valued at £149,634 in June 2011, against £182,341 in June 2006.

However, the study found that those who bought in 2009, when prices dipped, are now worth more.

According to Nicholas Leeming, business development director at Zoopla, several homeowners remain “stuck” with properties as they are reluctant to sell at a realistic price.

This is reflected in a survey by property website, Rightmove, who recently reported a rise in asking prices for the month of June – the sixth consecutive month of growth.

Rightmove’s research suggests vendors are too optimistic and need to accept the weak fundamentals within the housing market.

Meanwhile, Mr Leeming concludes that London has proved resilient. “The London market has been much stronger than the rest of the country over the past 12 months and the sheer strength of the London economy relative to the rest of the UK has helped support the overall property market.”

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