Rics: Thousands face negative equity
The Royal Institution of Chartered Surveyors (RICS) has renewed its warning that thousands of homeowners face the prospect of negative equity.
House prices have now fallen for eight consecutive months, according to Hometrack - and even with dwindling loan-to-value ratios RICS is cautioning that owner occupiers will see the size of their mortgage exceeding the value of their property.
The warning comes as new data from the Council of Mortgage Lenders confirms that the housing market is continuing its downward spiral, with the number of transactions reaching a 30-year low in May.
Commenting on the worsening situation, Michael Saunders, head economist at Citigroup, told the BBC that he now expects house prices to fall 15 per cent in 2008, having already dipped by six per cent in the past five months.
If accurate, the devaluation effectively means thousands of new homeowners have thrown money down the drain, in turn prompting prospective homeowners to steer clear of the market and focus on property to rent in London instead.
Published 12th June, 2008
© 2008 Estates IT Limited
London Rental Property News By London Borough / Category
Latest London Property News Headlines
Streatham town centre to be improved by BID?
Major improvements could be made to Streatham town centre thanks to a new business partnership.
Read Article ... Published on 25th May, 2012
Olympic infrastructure 'to drive east London house market'
The infrastructure created by the Olympics will see the east London property market become more popular.
Read Article ... Published on 24th May, 2012
Olympic infrastructure 'to drive east London house market'
The infrastructure created by the Olympics will see the east London property market become more popular.
Read Article ... Published on 24th May, 2012
Barking Splash Park opens this weekend
Barking Splash Park will be free to use this weekend (May 25th-27th) to mark its opening.
Read Article ... Published on 24th May, 2012
Southwark estates to get cheaper energy bills
Residents in Southwark can look forward to cheaper energy bills thanks to the creation of a new underground green network.
Read Article ... Published on 23rd May, 2012
Enfield £1.3bn masterplan unveiled
A masterplan has been unveiled that will see a 200-acre site in Enfield regenerated as part of a £1.3 billion plan.
Read Article ... Published on 23rd May, 2012
Londoners encouraged to grow their own fruit and veg
People in London are being encouraged to grow their own fruit and vegetables.
Read Article ... Published on 22nd May, 2012
Merton 'embraces green improvements'
Merton is now a cleaner, greener location to live in thanks to the implementation of the Wandle Valley Low Carbon Zone (LCZ).
Read Article ... Published on 22nd May, 2012
London house prices rise by 1,782% in past 35 years
London house prices have increased by 1,782 per cent in the last 35 years.
Read Article ... Published on 21st May, 2012
Poplar's Chrisp Street to get £100m regeneration
Some £100 million is to be spent regenerating the Chrisp Street area of Poplar in Tower Hamlets.
Read Article ... Published on 21st May, 2012
The Royal Institution of Chartered Surveyors (Rics) has renewed its warning that thousands of homeowners face the prospect of negative equity.