|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    24th of February 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Mortgage News feed Mortgage News

Economy News feed Economy News

All Financial News feed All Financial News

Millions in negative equity

Bookmark and Share

by David Masters
Millions in negative equity

The worst housing market crash since records began has left an estimated 1.2 million households in negative equity, according to Nationwide Building Society.

The average house price has dropped from £186,050 at peak in October 2007 to £150,500 today, a fall of over £35,000.

This month alone, prices fell 1.3%, or £2,500.

At current house prices, anyone who bought their home since 2003 paid more than it is now worth.

Michael Saunders, Citigroup’s head of European economics, said up to 200,000 people every month are falling into negative equity.

Saunders believes that 3 million people will enter negative equity before house prices bottom out. This is compared to less than 100,000 households in negative equity a year ago.

With 11.7 million mortgages across the UK, this would leave one in four homeowners unable to move house.

In related news, Government figures show that nearly one million UK homeowners are struggling with mortgage payments.

Earlier this week, the International Monetary Fund said the collapse in house prices will mean Britain suffers one of the worst recessions of any major economy.

Discuss this in the Finance Markets forums

Story link: Millions in negative equity

News posted: January 30, 2009

Financial Services:

Related financial stories to: Millions in negative equity:
Previous: «
Next: »

Visited 3479 times, 1 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: , , , ,