One million families facing negative equity
Falling house prices will push almost one million homeowners into negative equity by the end of next year, according to a report yesterday. By the end of this year 250,000 could find the value of their home is less than the size of their mortgage, it said. The U.S.-based bank Citigroup, which produced the report, said the number of homeowners in negative equity at the moment is a 'modest' 35,000. However, property prices could fall by 15 per cent, or possibly more, by the end of 2009. Its chief UK economist, Michael Saunders, said that if this forecast is correct, almost one million homeowners will be in negative equity.
Source : John Watson, 02 Jun 2008