Distressed sales surge in Midlands and the North

| October 20, 2009 | 0 Comments

Property Portfolio Rescue (PPR) has published its latest UK distress index, showing a surge in the number of distressed home sellers in major cities in the Midlands and the North.

In the three months to the end of September, the index rose by 60% in these regions, compared with the same period of 2008.

According to the residential landlord, enquiries from distressed property owners across the UK rose by almost 30% (to over 3,000) during the third quarter, with individuals, landlords and small business forced to sell their homes or residential property assets to avoid repossession or bankruptcy.

The firm suggests that any talk of a property market recovery is “London-centric” and not “the reality facing the majority of homeowners”.

PPR director, Nick Hopkinson, comments: “Recent property surveys reporting a house price rally are based on very low transaction levels and cherrypicked lending to high earners with huge deposits.”

He adds: “While shortage of property stock within Greater London is pushing up prices at the moment, the UK as a whole has not seen positive growth and many homeowners are increasingly facing negative equity and difficulties remortgaging as they come off fixed rates.”

In related news, Rightmove has reported that London home movers are now asking 0.8% more for their properties than in November 2007.

October also saw the national average asking price at a higher level than a year ago, for the first time since June 2008.

However, the 0.2% national increase reflects a 5.2% surge in London asking prices, year-on-year.

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