Newspaper article Evening Gazette (Middlesbrough, England)

Negative Equity Trap Bites in North

Newspaper article Evening Gazette (Middlesbrough, England)

Negative Equity Trap Bites in North

Article excerpt

TEES householders are among those being hit hardest by negative equity, a new report has revealed today.

Around a million home owners are thought to have fallen into the negative equity trap across the UK as house prices continue to fall, the Council of Mortgage Lenders said.

And the concentration of negative equity - that is, negative equity cases relative to the total owner occupied housing stock - is greatest in the North, where almost 10% of owner-occupied houses are estimated to be haunted by the spectre of getting less for their homes than they paid.

By contrast, the figure is around 1% in both Scotland and East Anglia.

New research suggests drops in property values left around 900,000 people with a home which had a value less than their mortgage debt at the end of 2008. But the number may have risen as high as 1.18 million by the end of February, added the CML.

The number could be heading towards the 1.5 million households estimated to have found themselves in negative equity at the depth of the last housing market recession in 1993. …

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