3.45m homes bought in last 5 years now 'Underwater'

22nd June 2011

New research from leading property website Zoopla.co.uk shows that 4 out of 5 homes purchased in Britain since 2006 have a market value today below their purchase price. Of the 4.32 million homes purchased since 2006 and where the ownership remains the same, 3.5m (80%) of these homes are ‘underwater’ (worth less today than their purchase price), according to

Zoopla.co.uk which lists over 17 million previous sale prices and provides current value estimates for every UK property.

Those worst affected are the homeowners who bought at the peak of the market. 93.2% of homes bought in 2007 and 88.9% of those bought in 2008 are now ‘underwater’. Over the last 5 years, buyers who have fared best are those who bought in 2009, having successfully timed the bottom of the market during the recent downturn.

At a regional level, the North East of England is the worst affected area, with 93% of properties purchased since 2006 yet to climb back to the values paid for them by their owners. At the other end of the scale, less than half (46%) of homes bought over the last 5 years in London are now valued below their purchase price, underlining how much more resilient the capital has been to the property downturn versus the rest of the country.

Nicholas Leeming of Zoopla.co.uk, commented:: “There is an unprecedented number of homeowners ‘stuck’ with homes they bought in recent years with the expectation that prices would continue to sky-rocket. And as a result of not wanting to take a loss on their asset, many owners have been unwilling to set realistic asking prices to sell them. The London market has been unique and bounced back very strongly from the recent market lows of 2009.”

Number of homes 'Underwater'by year of purchase

Year	# Transactions	# Below Purchase Price	% Below Purchase Price
2006	1,165,239	88,8293	76.2%
2007	1,184,000	1,103,240	93.2%
2008	631,964	561,902	88.9%
2009	607,502	288,664	47.5%
2010	638,626	561,797	88.0%
Total	4,320,569	3,458,513	80.0%

Source: Zoopla.co.uk (June, 2011)

Number of homes bought in last 5 years 'Underwater' by region

Region	# Transactions	# Below Purchase Price	% Below Purchase Price
North East	231,088	215,264	93.2%
Yorkshire & TheHumber	306,507	283,920	92.6%
East Midlands	322,987	293,838	91.0%
Wales	178,604	158,156	88.6%
North West	453,840	398,375	87.8%
West Midlands	352,124	308,181	87.5%
South West	442,365	373,062	84.3%
Scotland	374,387	306,032	81.7%
East	459,174	360,911	78.6%
South East (exc.London)	708,189	533,630	75.4%
London	491,300	225,779	46.0%
Total	4,320,569	3,458,513	80.0%

Source: Zoopla.co.uk (June, 2011)

- Ends -

For further information, please contact PR Team on pr@zoopla.co.uk or +44 (0)20 3873 8770.

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