Some areas are at risk of negative equity, claims expert
April 26, 2008 by admin
Filed under News, News-Mortgages
There are concerns that certain areas of the country may be prone to negative equity over the next two years, according to the UK property market information provider Mouseprice.
A survey published this month found that 23 per cent of 24 to 34-year-olds are worried about having negative equity and 13 per cent of respondents said they had decided to delay their plans to move until the situation in the housing market situation improves.
Jonathan Upton, business development director at Mouseprice, said: “The conditions that are required for negative equity are present in some areas,” adding that the situation will depend on the level of deposit that people took out, when they bought their house and the profile of the housing market where they live.
However, Mr Upton also commented that it is difficult to tell whether first-time buyers will be particularly hard hit.
In their favour, people who are not yet on the housing ladder may benefit from falling house prices, giving them a stronger hand in negotiations.
