Property Repossessions Make Great Investments
Latest figures from the Land Registry show that property repossessions have dropped in every region of the UK with falls in the past year ranging from 10 – 39% whilst property prices have continued to climb.
The December 2013 data from Land Registry’s House Price Index (HPI) shows an annual property price increase of 4.4% which takes the typical average property value in the UK to £167,353.
The monthly change from November to December 2013 showed a property price increase of 1.1%.
But behind the good news there is a large North-South divide in property repossession volumes, with the number of property repossessions far greater in Northern England than the number of repossessions in the South, even after the recent falls.
Property repossessions are a fantastic opportunity for would be property investors as the mortgage lender in possession of the property are only seeking reimbursement for their initial mortgage outlay, presenting below market value (BMV) opportunities for investors.
The UK regions with the greatest fall in the number of repossession property sales were the East Midlands and the South West.The Land Registry’s figures are based on data from the month of October 2013, contrasted with the same month a year earlier:
|Repossessions by region||October 2013||October 2012||Difference|
|Yorkshire & Humber||165||251||-34%|
|England & Wales||1,129||1,636||-31%|
The Charlbury Group, which runs the Arrears Management System used by UK mortgage lenders, has produced data on how long it takes to re-sell repossessed properties, with repossessed properties in the South East selling the fastest, taking an average 125 days and the slowest is across Northern England with repossessed property re-sales taking an average of 156 days.
Property investors can speak to local estate agents and enquire about repossession properties or they can keep an eye on local newspapers to find some great deals, if they know what to look for!
Where property advertisments state that the agent has recieved offers for £xxx,xxx there is a good chance that that property has been repossessed and the mortgage lender is looking for recompense, hence the property being offered below what other properties in the same area are going for.
To see a list of websites offering great properties being offered “For Sale By Owner – FSBO” – Click Here
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