Wednesday, September 7, 2011
The crash word twice in the first six lines
Financial outsourcer HML warns a further drop in house prices could get the nation close to the record 1.8m negative equity cases seen during the crash of the early 1990s. HML has calculated if house prices fall by a further 10 per cent the number of households plunged into negative equity could double to 1.7m, just short of the peak that was witnessed during the recessions in the 1990s. Currently 827,321 homeowners - 7.3 per cent of all households with a mortgage - have a debt that is greater than the value of their property. If house prices fall by 10 per cent that number will double to 1.67m - 14.8 per cent - which is close to the record 1.8m negative equity cases seen in the house price crash of the early 1990s.