FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

Negative equity threat to 1.2 million in UK

The Bank of England has revealed that 1.2 million home owners in the UK will be at serious risk of moving into negative equity before the ongoing credit crunch is at an end. While this figure is even higher than the most pessimistic of reports over the last few months it could get even worse before we start to see any improvement.



Those who are unlucky enough to fall into negative equity will either need to downgrade their homes else wait for a recovery which could be many years arriving (indeed the latest report today claims that the UK property market will not recover until 2013). The more people that remain in their current homes the less activity there will be in the general housing sector and the less short to medium term growth.



As we have covered on numerous occasions the UK is one of many countries which depend upon the local property market for economic growth, therefore no growth in the property market will hold the economy back to a certain extent. Many people who had experienced negative equity in the 1980s were certain that they had seen the last of this uncomfortable spectacle but it is back with a vengeance.

Share this..

Related stories

Income Protection Jargon Buster

19/01/2015 You may have read our previous article, “What is Income Protection?” and decided that you would like to take measures to protect your wage, if you are ever unable to work due to illness or injury. If you are unsure of the terminology used when looking for a policy, or just want to make sure... Read More

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue