Right conditions for negative equity in parts of the UK |
23 2008 |
| The conditions in some parts of the UK housing market are ripe for negative equity. That is according to website Mouseprice, which said that many people may soon find themselves paying a mortgage which is larger than the price of their house. It is bad news for buyers and is yet more evidence that it often makes financial sense to rent rather than buy, particularly in the current economic climate. "The conditions that are required for negative equity are present in some areas," said Jonathan Upton, business development director at Mouseprice. "An Experian survey suggested that there were some areas in the country where they had concerns that negative equity might crop up in the next couple of years. "Really the situation with first-time buyers is difficult to call because it depends on the level of deposit that people took out and it depends when they bought it," he added. Halifax recently revealed that house prices fell by 2.5 per cent in March.  |
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