Insurance News Archive
25% property owners afraid of negative equity risk
A quarter of UK property owners are afraid of the risk of negative equity, new study shows.
Figures from Fairinvestment.co.uk reveal 11 per cent of these purchased at the height of the boom, which could be of particular concern to buy-to-let landlords.
It found three per cent of property owners worried about depreciation had initially made the purchase as an investment.
Sharon Bratley, chartered financial planner at the organisation, claims the slowness of the fall in mortgage rates increases the risk for buy-to-let owners.
"Our results show that as house prices continue to fall, a large number of mortgage holders are becoming worried about their position … it is clear that more needs to be done," she states.
Acknowledging other issues facing the market, she says potential job losses, low interest rates on savings accounts and the economic conditions all further exacerbate the risk presented by negative equity.
In other news, buy-to-let property owners have been advised by the National Landlords Association to find letting agents which do not charge renewal fees.
27 Jan 2009
