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Housing equity triples in a decade

From the Bolton Evening News, first published Tuesday 30th Mar 2004.

RISING house prices have led to a tripling in the value of housing equity over the past 10 years.

And research by the Council of Mortgage Lenders says that prices would have to drop by 22 per cent before people who became first time buyers in 2002 are exposed to negative equity.

The Council of Mortgage Lenders say for home-owners who have moved within the last five years the average outstanding mortgage is £76,000.

Last year saw around 359,000 first time buyers.

Of these, 97,000 took out loans with less than a five per cent deposit , with an additional 40,000 paying a deposit of between five and 10 per cent.

The CML report emphasises that they do not expect house prices to fall. However, even if they did, the numbers of people likely to experience negative equity would be "modest" compared to the 1.7 million of the early 1990s.

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