Shocking news for a North Norfolk homeowner this week as her £80,000 ($157,000) home is valued at being worth just £1 ($2).
The worry of falling house prices has been taken to a whole new level for one resident of small Norfolk village Happisburg this week. As home owner Jane Archer learnt her 3-bedroom bungalow with uninterrupted sea views was valued at just £1 ($2).
Estimated to be worth in excess of £80,000 ($157,000) based on similar local properties, 'chronic costal erosion is to blame' for making the home virtually worthless.
When the Mum of three originally purchased the property for £20,000 ($39,000) in 1987 it sat over 400 metres from the striking coastline. Now just 60 meters of land separates her bungalow from the sea. This leaves her faced with the prospect that after 20 years of mortgage payments her family home is now worth less than a loaf of bread.
"We were angry and frustrated when we were told it was worth £1" said Ms Archer. "It is so unfair, because when we came here the policy was to maintain the defences".
Ms Archer and her partner Chris Cutting had planned to use the property as collateral for a business loan and arranged the valuation accordingly. The couple's intention was to expand their car repair business with the funds raised. However, to add insult to injury they have now lost out on an additional £60,000 ($118,000) by backing out of the deal.
Several homes and a long stretch of road have already been lost to sea after the wooden groynes that previously protected the 80ft high cliffs began to fail. A 12th century church and listed lighthouse are soon set to follow, along with the many other houses and businesses in the village, as Happisburg is left to slip into the sea.
The loss of this picturesque village and many others like it around the British coastline is largely preventable if new coastal defence measures are implemented. However, the government’s ‘managed retreat’ policy currently prevents this by surrendering smaller towns and focusing funds only on protecting ‘main resorts’ from the sea.
At the present time there is no compensation scheme in place to protect vulnerable home owners like Ms Archer whose property has been willingly surrendered to the sea. However, she, along with many others, plan to appeal to the environment minister, Phil Woolas, in the hope that he will decide to overturn this decision or recompenses them for their loss.
"I will tell him he is destroying our lives," said Ms Archer.
"Lots of money is spent by the authorities compensating and finding new habitats for rare birds whose homes are threatened by climate and coastal management changes - but what about people? Are they just going to let my house fall over the edge of a cliff, and leave us with nothing?"
While the future remains uncertain for Ms Archer, her family and the other residents of Happisburg, one thing is for sure. This story definitely puts things into perspective for the rest of us coping with the property downturn. While the currently estimated 6.3% drop in value on last year’s figures seems bad, their 99.995% loss on the other hand is unimaginable.
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