Figures published by mortgage group HML suggest that almost half a million homes are worth less than the mortgages held on them. In all 8 per cent, or 463,000, of mortgage holders were in negative equity. However, as usual with UK property news there are huge regional variations.
For example, in Northern Ireland 68,000 homeowners, or 41 per cent of borrowers, were in negative equity at the end of last year. The figure in northern England is 16% and in Scotland, 13 per cent of households were in negative equity. But in London, only 1 per cent of borrowers were in difficulties, following the recent boom in the capital’s property prices.