One-in-10 UK home owners hit by negative equity

It said house prices had fallen by around 20% between the autumn of 2007 and the spring of 2009, the largest nominal fall in property values on record.

However it also found that the majority of homeowners still benefited from equity in the property and in others the total value of negative equity was relatively small.

The research suggested that between 73% and 78% of households who were in negative equity faced a shortfall of less than £15,000, and between 56% and 65% had negative equity below £10,000.

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