Four in 10 homes were sold at a loss since the start of 2007, it was revealed on Wednesday.

According to Castle Trust, which took the data from the Land Registry, 41% of homes across the UK were sold for less than they were bought, with the average shortfall equal to £24,430, or 11% of the average house price.

The houses were purchased and sold between January 2007 and January 2013.

The research, revealed that the most common reasons people sold at a loss was because they had secured a good deal on another home or as a result of divorce or separation.

Sean Oldfield, chief executive officer, Castle Trust said: "Since the downturn, over 130,000 families have made a loss on their home placing them under enormous financial and emotional pressures. When you take into account the costs associated with moving home, from stamp duty to solicitor's fees, this situation becomes even worse.

"The long-term performance of house prices shows national house price growth in line with national wage growth, but it is clear that individual house prices are really volatile and that home ownership is risky - much more risky than almost everyone appreciates."

The data showed that regionally, the number of homes sold for less than the purchase price was highest in Yorkshire & Humber, where 48.2% of properties sold for a loss, 48.0% for a profit and 3.8% returned the purchase price.

In contrast, the highest proportion of homes sold at a profit over this period was in Greater London, where 71.1% of properties sold for more than the purchase price, 26.1% for less and 2.8% for the same.

Looking ahead, 13% of home owners say they are concerned that they may be forced to sell their current home for less than the purchase price, rising to 25% for those aged 18-34.

The good news was that for the 55.6% of homes sold at a profit, the average size of the gain was £45,199, equal to a 20.4% profit.

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