Tuesday, February 10, 2009
One in five
One in five homeowners could fall into negative equity as the recession bites, the City watchdog warned yesterday. House prices may decline by 30 per cent from 2007 levels, leaving 2.5million people with homes worth less than they owe on their loans, the Financial Services Authority said. This represents more than 21% of all mortgage holders.Some 500,000 of these are thought to be holders of buy-to-let deals, which the authority singled out as a particular concern. The housing crash is already the worst since the 1950s, with prices falling at an annual rate of nearly 20 per cent. At this rate, up to 200,000 people are falling into negative equity every month.