Clonattin Village
Tuesday, June 3, 2008
Monday, June 2, 2008
Negative equity hits 250,000 - and there is worse to come
After months of gloomy forecasts, analysts have finally confirmed the news that homeowners had been dreading for months: that large numbers of British householders have slipped into negative equity.
According to the investment bank Citigroup, a quarter of a million of them now owe more than their properties are worth since house prices started to drop at the end of last year.
Citigroup said prices had dipped by 7 per cent since the autumn and the bank's chief UK economist, Michael Saunders, yesterday warned that house prices could fall by 15 per cent or more by the end of 2009. Such a drop would leave at least a million homeowners in negative equity.
The Guardian
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