Negative Equity Threatens 75,000
New analysis from the credit rating agency, Experian, shows that up to 75,000 households are under threat of negative equity.Areas of Manchester, Glasgow, south-east London and Birmingham are said to be potential "negative equity hot spots", as the value of the average home is only a modest amount above the mortgage on the property.
It is understood that the information is being looked at by banks and building societies, which may refuse to lend money to people living or moving to the negative equity hot spots.
According to the research, 78,394 households have less than 20 per cent equity in their homes, and face being plunged into financial turmoil if house prices fall by 20 per cent - as some experts predict.
If house prices fell by 25 per cent, a further 87,524 households would be dragged into negative equity. More than 8,000 people are already in negative equity and more than 23,000 would be if house prices fell by 10 per cent.
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