True value of repossessed properties at 65% of the market price.
HML of the Skipton Group have reported that properties selling post repossession are on average down to 65% of their true value across the UK.
The most heavily discounted properties can be found in Northern Ireland, where property could be snapped up for just 42% of its market value, whereas Scotland and the North of England sold on average for 63% of their value.
Damian Riley at HML commented: “This observed drop in price is as a result of the deteriorating condition of empty repossessed properties once utilities are disconnected and general maintenance reduced or stopped.”
Once again, prices in London are set above the rest of the UK, where potential investors can only scoop a discount to 78% on average.
“The regional figures show there is a North/South divide, with repossessed properties typically selling for well below market value more in the North than in the South.