One in five recent homeowners 'in negative equity'

By Lucy Bower

Nearly a fifth of homeowners (17%) who bought their homes since 2007 are in negative equity. That's according to research by property website Rightmove, published in The Daily Mail.

Being a homeowner 'in negative equity' means your home is worth less than you borrowed to buy it, so these homeowners are 'saddled' with a mortgage that's larger than the value of their home, which could prevent them moving - as Rightmove points out, we'd need to see 'more than a modest recovery' in house prices.

Four in 10 people surveyed believe prices will remain the same for the next 12 months; about a quarter think prices will marginally decrease in that time.

According to property analyst Hometrack, house prices dropped 0.1% in October - for the third month in a row. That's despite an increase in new buyers registering with estate agents.

Even so, prices have only dropped by 0.4% over the last year - the smallest amount for two years. This is partly because of the end of the stamp duty concession this spring, which prompted an influx of first-time buyers to the market.

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