MORE than a TRILLION pounds has been wiped off the value of homes in Britain in the past year-with the wealthy south east worst hit, we can reveal.

The news comes amid reports of a recovery in the housing market-but that will be scant consolation to towns clobbered by the credit crunch.

The biggest meltdown occurred in ancient Chertsey, in leafy Surrey, where the price of houses and flats dropped by almost £200 A DAY.

Helpless homeowners there have seen an eye-watering £70,803 wiped off their properties in 12 months as prices tumbled by 23 per cent.

5 TOWNS WITH BIGGEST FALLS

1 - Chertsey, Surrey (23.48%)

2 - Dover, Kent (21.97%)

3 - Luton, Beds (21.24%)

4 - Southam, Warwickshire (21.08%)

5 - Purfleet, Essex (20.91%)

Towns on the London commuter belt have suffered the most, according to property website Zoopla.co.uk which surveyed the value of all 26 million homes in the UK.

Top of the list are Purfleet, in Essex, Dover, in Kent, Luton in Bedfordshire and Southam in Warwickshire where prices have plunged by 20 per cent.

Wealthy London workers moving out to the commuter belt sent prices soaring in boom years.

But now some towns have become unemployment blackspots as City workers lose their jobs.

Alex Chesterman, CEO of Zoopla, said: "Those areas that have experienced the largest value drops are the same areas that grew at a faster pace than others in preceding years.

"There have been some welcome signs of a slowing in the rate of decline of UK house prices but it is too early to tell whether this is a short term seasonal bounce or a more sustained effect."

Overall, the value of the UK's housing market has plunged by 18.62 per cent in the last year- from £6 trillion to £4.9 trillion, say Zoopla.

But some regions have escaped relatively unscathed, with rural towns in the South West suffering only a small drop. In small, industrial Wellington in Somerset prices have fallen by only £49 a day since last March. And in Lewes, East Sussex, they have dropped by just seven per cent. Burford, in Oxfordshire, Marlborough, in Wiltshire, and Beaminster in Dorset have also weathered the storm well.

Experts now believe the house price slump is slowing. Howard Archer, Chief Economist at Global Insight, said: "Mortgage approvals are picking up.

"But it's hard to see house prices rising any time soon. It is still very difficult for many people to get mortgages."

Families get 30-day dent aid

DEBT-ridden families will be given a 30-day breathing space from collection agencies under new rules coming into force tomorrow.

They will not be able to chase for cash during that time if struggling borrowers have spoken to advisers like Citizens advice.

Millions of Brits are struggling to repay £1.45 trillion of debt in mortgages, credit cards and loans.

Consumer Minister Gareth Thomas said: "This will help them take control of their finances and encourage them to seek help from debt advisers."

It is being written into the Credit Service Association's code of practice, which governs debt collectors.

Extra help for poverty-stricken families who cannot afford the £495 fee to go bankrupt also comes into effect tomorrow. They will be able to write off debts and start again after 12 months.

Mr Thomas said: "We want anyone in difficulty to be able to access the help they need and be treated fairly."

• Kicked in the Cobblers!

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