1.2 million Homeowners Face Negative Equity As House Prices Continue To Crash
28 October 2008 / by Rachel Mason
More than a million homeowners could find themselves in negative equity as the housing crisis continues, said the Bank of England.
In its Financial Stability Report, the Bank of England has predicted that 10 per cent of homeowners will soon find themselves in negative equity as a result of falling house prices.
Currently, around half a million homeowners owe more on their mortgage than their houses are worth, but with a further 5 per cent fall in house prices, the Bank of England expects to see negative equity hit one in ten homeowners – around 1.2 million people.