£300BN WIPED OFF VALUE OF HOME

by LotusFlower | June 11, 2008 at 10:41 pm

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This news coupled with fact that tens of thousands of Britons were offered and took 100% mortgages when prices were high sees the possibility of many families losing their homes to repossession. The global credit crunch bites deeper.

Britons have collectively seen nearly £300 billion wiped off the value of their homes since house prices first began to fall, research has showed.

The collective value of residential property in Great Britain has slumped to £5.836 trillion from more than £6.1 trillion when prices peaked in September last year, according to property valuation website Zoopla.co.uk.

The group said the current market downturn had led to more than £1 billion a day being wiped off the collective value of British homes.

But it added that the recent price falls should be seen in the context of strong gains in recent years, with the value of Britain's housing stock soaring by £750 billion during the past three years and £1.7 trillion during the past five years.