-Repossessed houses in London offer a fantastic opportunity for investment.
– London has a population of 8.8 million (according to Official National Statistics, ONS)
– That’s an estimated 3.3 million households
– According to the ministry of justice, 320 mortgaged homes were repossessed in London in 2017
It is common knowledge that house repossessions in London can feature some of the best property deals the UK has to offer which can often be bought for around 30% below market value. Considering this, in a city where the average property price is just under 500,000 (according to rightmove), it would be ideal to locate repossessions in this area. Despite the booming property prices, repossessions are still present in London. In fact, in the last quarter of 2017, research from the ministry of justice revealed the City of London district to have the highest amount of mortgage repossessions per 100,000 households in the whole of the UK. Below is a table of the areas in London with the highest repossession rates per 100,000 households in the final quarter of 2017.
Repossessed Houses in London
Although not an encouraging prediction, the amount of repossessed houses in the London area may well increase in the coming years. There could be a number of reasons for this. Firstly, the consistent increase in property prices is not reflecting on the average salary – ONS revealed that property prices have increased by an average of 7.7% year on year from 2009, while average wages have increased by just 1%. This indicates that those that live and work in London may be somewhat financially stretched with the mortgage payments for their property. This may become increasingly difficult for future residents as property growth is still on course to beat the average salary growth. Secondly, it has been reported by numerous sources that interest rates in the UK may rise in 2018. If this is to happen by just 1%, the average London mortgage will rise £147 a month. The outcome of this could be more mortgage repossessions, as many homeowners would have originally borrowed as much as possible in order to land a mortgage for a property in London.