Average East Lancs home lost £15,000 in value in six months (From Lancashire Telegraph)
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Average East Lancs home lost £15,000 in value in six months
3:20pm Sunday 8th March 2009 in News
PLUMMETING: Property market
AN average East Lancashire house has lost £15,000 in value in just six months, new figures reveal.
Homes across the area have plummeted in value following a collapse in the property market, leaving many people facing the prospect of being in negative equity.
And experts have warned the situation could get even worse for homeowners as the market continues to stall.
The figures, compiled by property website Zoopla.co.uk, show average homes in Clitheroe have lost almost £24,000 in value while Blackburn house prices have decreased by nearly £14,000.
In Burnley, where the average house costs £107,500, properties have lost almost £13,000 in value, £12,100 in Nelson and £14,100 in Colne.
Meanwhile, average homes in Rawtenstall have plummeted by £16,300 and in Accrington homes have lost £12,300 in value.
Blackburn estate agent James Whitehead said: “Everyone in the property market is on a journey and for most it will be difficult.
“From the highs of 2007, some houses have come down in price by about 25 to 30 per cent but for others it won’t be as much.
“The ones that have probably suffered most have been the large detached properties with big mortgages.
“I think this kind of thing will probably go on into next year.
"The problem is interest rates are down and no one is lending to kick-start the market again.”
Previous figures from the Land Registry had found that market values were holding up in the Ribble Valley and Rossendale.
In December they revealed that property prices in the Ribble Valley shot up 16.5 per cent between July and September, with prices in Rossendale also rising 1.6 per cent.
Meanwhile, nine out of 19 of Zoopla’s ‘lowest value streets’ in the UK are in East Lancashire:
- Harcourt Street, Burnley
- St Matthews Court, Burnley
- Cambridge Street, Nelson
- Oxford Street, Nelson
- Nuttall Street, Burnley
- Bright Street, Colne
- Baker Street, Burnley
- Essex Street, Nelson
- Altham Street, Burnley.
Comments(7)
Kevin, Colne
says...
6:27pm Sun 8 Mar 09
The CML said it would be 'futile' to produce a forecast, the Halifax used the excuse that it was being taken-over by Lloyds, and the Nationwide said the task was too difficult.
I recorded in my Investment Diary on 19 December 2008: 'It is obvious that these three organisations are nothing more and nothing less than serial property-rampers. They now fear that if they came forward with estimates that are even remotely realistic they will be contributing to further falls in house prices and thus damage the value of the collateral against which they have advanced loans in an orgy of recklessness that has now come back to bite them on the ****'.
Akki
says...
7:26pm Sun 8 Mar 09
Michael@ClitheroeSince58
says...
7:57pm Sun 8 Mar 09
If no one is building new houses, it is common sense that prices will go up not down.
So do you feel lucky punk?
Kevin, Colne
says...
9:32pm Sun 8 Mar 09
In November 2007 HSBC published a report on this very topic. At the time the report was hardly given any attention by the media, although had they done so those who were buying at the cusp of the peak might well have had second thoughts. The entire media elite were, almost without exception, sitting on the deck of the ship 'HMS Soft-Landing'.
The analysis at HSBC was undertaken by Karen Ward who said: "There is around 30% of the current house price level that cannot be explained."
I recall at the time having to read this twice because I thought I'd mis-read it. My first thought was that a decimal point was missing between the 3 and the zero, but no it was 30%. I wrote in my diary on 29 November 2007: 'Sometimes it's hard to grasp the enormity of a situation at the time when it starts to unfold, but this has all the hallmarks of turning into something very grisly.'
Markus Spartacus
says...
3:13pm Mon 9 Mar 09
halfasixpence
says...
12:26pm Sat 14 Mar 09
People claiming to have lost a lot of money so far are those that probably helped casue the problem so far, the thrill seekers and the quick buck gang.
They always used to say "Buy the worst house in the best street" but currently I feel as an investment, the opposite is true.
Long term players will "Still" be the gainers in a yeear or so, the property market has already picked up according to estate agents and mortgage brokers that I personally have spoken to over recent weeks, mortgage applications are up by a fair percentage. As soon as the banks start to lend a little more, watch the prices rise as soon as they fell and all of the short term crocodile tears will fade silently into the ether.
Michael@ClitheroeSince58 says...
6:02pm Sun 8 Mar 09