Almost three-quarters (71%) of houses sold in London during this period made a profit despite the tough economy, compared with less than half in Yorkshire and the Humber, the north and the East Midlands, shared equity firm Castle Trust found.
Of the 41% of homes sold for a loss across the country, the average shortfall was £24,430, according to the firm’s analysis of Land Registry figures. Over the same period, 56% of homes were sold for an increase on the original amount the seller paid, making an average sum of £45,199.
London house prices have tended to buck the national trend by recording relatively strong increases, much of which has been put down to wealthy overseas buyers who see the English capital as a safe haven amid the troubles of the eurozone.
Lenders are expecting housing market activity to pick up this year amid government efforts to improve mortgage availability and give people a helping hand on to the property ladder.
However, while activity is thought likely to increase, predictions for house prices this year have been more mixed, with some reports forecasting increases, some decreases and others saying prices will remain broadly flat across the country.
Property search website Zoopla recently reported evidence that sellers are becoming more confident in taking a firmer approach to their pricing this year. It said that 31% of homes on the market have had the asking price cut – the lowest proportion in two and a half years and a sharp drop from 37% a year ago.
A separate survey by Castle Trust among more than 2,000 people found that the most common reason people had for selling their home at a loss was that they wanted to trade up while house prices were still relatively flat.
Other popular reasons for selling at a loss included divorce, the house being too cramped, the need to relocate for work or no longer being able to afford the mortgage.
Although most homes have been sold for a profit since 2007, researchers said the probability of making a loss has increased significantly compared with long-term averages – 92% of homes sold since 1995 have made the owners a profit.
Finding a solution to predicting peaks and trough in the property market sector by comparing the present economy, to past trends and future forecasts will require a multi dimensional analytics software package, this is where Informatrix OneView can help.
Businesses that adopt Infomatrix OneView can benefit from increased efficiency and awareness of the key factors that can impact their growth and market share.