Negative equity could become a reality in some areas
www.moneynews.co.uk > Housing market > Negative equity could become a reality in some areas
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Money News |
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Negative equity could become a reality in some areas
Tue 22nd Apr 2008
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John Upton said that the conditions needed for a homeowner to experience negative equity - defined as when the value of an asset used to secure a loan is less than the outstanding balance on the loan - are already "present in some areas".
With regard to first-time buyers, he suggested that the situation is "difficult to call" because there are a number of varying factors, such as the level of deposit they took out or the date they purchased their home.
Mr Upton did state however that "for first-time buyers there's no doubt that falling house prices puts them in a stronger position in regards to negotiations".
According to a recent report from Fool.co.uk, 23 per cent of 24 to 34-year-olds are concerned about negative equity.
That is likely to include large numbers of first-time buyers, whose average age is 29.
Related News : Housing market |
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