How much your house should be worth now as Grimsby area continues to suffer effects of the 2008 crash
Homeowners in North East Lincolnshire who bought their house just before the 2008 financial crisis may still find it a struggle to sell up for more than they originally paid.
According to a new study, every ward in the borough has seen the average value of homes decrease in real terms since 2007 when prices peaked before the impact of the crash took hold.
Analysis based on data from the Office for National Statistics shows some areas have been particularly sluggish in seeing house prices recover.
The chart above shows the current average price of a property in each ward of North East Lincolnshire compared to what it would be worth today had values remained at 2007 levels.
In North East Lincolnshire, the West Marsh has seen the biggest decrease of 37 per cent whereas Waltham has seen the smallest decrease with just 7.8 per cent. The slow rates of recovery coupled with stagnated wages mean many have found themselves in negative equity and unable to move home without making a loss on their investment.
Across the wider Yorkshire and the Humber region, 92 per cent of wards have seen a decrease in the average value of homes. This makes us the second slowest region to recover behind the North East where the figure stands at 95 per cent.
Overall, the least expensive ward in the country is North Ormesby in Middlesbrough with an average house price of £36,000. This is in stark contrast to the most expensive ward which is Kensington and Chelsea, where an average property costs £2.9 million, which works out the same as purchasing 80 homes in North Ormesby.
It is a very different picture in London, who have experienced an incredible 99 per cent increase in recovery prices since the 2008 crash, and is one of only three regions including the East and South East of England who have experienced an overall increase.
The figures are a reflection on the explosion in house prices which accelerated wildly between 2001 and 2007. By June 2004, the average house price in North East Lincolnshire had increased by almost 30 per cent in just a year, from £64,993 to £85,639.
However, though areas such as London have seen house prices largely recover to pre-crisis levels, this is not the case in North East Lincolnshire when inflation is taken into account.
The average property price in the borough stood at £120,530 in August 2017. Though this appears to be marginally below the all-time peak of £123,639 in December 2007, that figure does not account for inflation which would take the values a decade ago to something in the region of £150,000 in today’s money.
How the average property price in North East Lincolnshire stacks up compared to what it would be today had values remained at 2007 levels:
Croft Baker – £115,000 would be £141,450 today (23% decrease)
East Marsh – £52,000 would be £71,240 today (37% decrease)
Freshney – £129,950 would be £154,640.50 today (19% decrease)
Haverstoe – £189,000 would be £215,460 today (14% decrease)
Heneage – £103,000 would be £109,592 today (6.4% decrease)
Holton-le-Clay – £160,000 would be £187,200 today (17% decrease)
Immingham – £119,500 would be £130,225 today (9% decrease)
Park – £131,000 would be £141,742 today (8.2% decrease)
Scartho – £154,000 would be £172,480 today (12% decrease)
Sidney Sussex – £87,000 would be £107,010 today (23% decrease)
South – £80,000 would be £96,000 today (23% decrease)
Waltham – £185,000 would be £197,950 today (7.8% decrease)
West Marsh – £54,000 would be £74,520 today (38% decrease)
Wolds – £169,352 would be £183,916.272 today (8.6% decrease)
Yarborough – £99,000 would be £117,810 today (19% decrease)
However in contrast, our area has a wide variety of properties for sale at a much reduced rate than other areas of the country, making it ideal for investors and those looking to get on the property ladder.
Housing market analyst Neal Hudson told the BBC: “Some people are trapped in their current homes as they have seen no increase in their income and cannot afford to borrow more.
“Potential first-time buyers in the private rented sector do not have a sufficient or stable income to buy their first home. The idea of committing to a 25 to 30-year mortgage when they are not sure what they are going to earn in the next year is difficult.”
The news also comes as it has been revealed the number of homes being bought and sold across the country, has not recovered to pre-2008 levels.
In 2007, across England and Wales almost 1.3 million residential properties were sold at full-market value. Compare that to the following year where the numbers had almost halved, and in 2014 the figure had only recovered to 900,000, showing there is still a way to go before the property market fully recovers.