An estimated £426m worth of property across England and Wales has been repossessed in the last 12 months, analysis from HBB Solutions has indicated.

The figure is made up from 2,500 homes, according to the property investment firm.

HBB Solutions analysed government data on the level of homes to have been repossessed over the last year, as well as the price they achieve as a result of this repossession and how this compares to their value in the current market. 

With these homes going for an average £173,995, the analysis suggested that homeowners faced with repossession are looking at a loss of 40% in value when compared to a wider average house price of £288,498 – which equates to a drop of £114,503.

HBB Solutions managing director, Chris Hodgkinson, commented: “Much has been made about the meteoric property market boom that has materialised during the pandemic, but despite this buoyant bricks and mortar landscape, there are many who continue to struggle with the cost of homeownership, a struggle that some will ultimately lose.

“The unfortunate consequence is that their home will then be repossessed and achieve a far lower resale. In fact, our research shows that on average, it will achieve less than half what their home could be worth in the regular market.”

The analysis showed that the North West was home to the most property repossessions in terms of the volume of homes in the last 12 months, at 495. The North East also ranks high in this respect (335), followed by the South East (312), London (306) and Yorkshire and the Humber (289). 

However, in terms of the total value of homes repossessed, the high price of property across the capital saw London coming out on top, with an estimated £120.2m worth of property repossessed over the last year. The South East follows with an estimated £89m in repossessed property, with the North West in third at £48.7m.

“With interest rates on the rise and the cost of living climbing sharply, homebuyers should think very hard about the financial commitment they are making and how far they can stretch before the monthly cost of homeownership becomes too much to handle,” added Hodgkinson.

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