130,000 homes sold at a loss since 2007

MORE than 130,000 British families have sold their homes at a loss since the financial crisis began, according to a report released today.

The figures lay bare the damage done to house prices since 2007, with 41 per cent of homes bought and sold during the last six years reaching less than the seller paid for them.

The average shortfall on affected homes in England and Wales was £24,430 – or 11 per cent of the house’s value, according to analysis of Land Registry figures by shared equity mortgage provider Castle Trust.

However the capital’s housing market once again bucked the national trend, with just a quarter of London homes bought and then sold at a loss in the last six years.

Few homes were sold at a discount in the pre-crash era, with just 7.5 per cent of homes selling at a loss during the 12 years between 1995 and 2007.

Sean Oldfield, chief executive of Castle Trust, said: “The long-term performance of house prices shows national house price growth in line with national wage growth, but it is clear that individual house prices are really volatile and that home ownership is risky – much more risky than almost everyone appreciates.”