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
St John's Wood brings the village atmosphere to the capital
St John’s Wood is a great location for people looking to capitalise on all the benefits of London living without being caught up in all the hustle and bustle.
Read Article ... Published on 26th May, 2015
Yeading: Enjoy peaceful city living in an up-and-coming area
Yeading is a laid-back and peaceful residential area situated north-east of Hayes and is one of the most up-and-coming areas of the capital.
Read Article ... Published on 26th May, 2015
Hanwell: A green, peaceful environment for Londoners
Hanwell is a small town located in the Borough of Ealing and is in between Ealing and Southall, providing excellent transport links to the rest of the capital.
Read Article ... Published on 26th May, 2015
Mitcham Carnival announced for June
Mitcham Carnival has been announced for Saturday June 13th at Three Kings Piece.
Read Article ... Published on 22nd May, 2015
Hammersmith and Fulham Council start Park consultation
Hammersmith and Fulham Council have launched a new consultation on Hammersmith Park, inviting local residents to have their say on the area and how it can be improved.
Read Article ... Published on 22nd May, 2015
New conservation areas planned around Waltham Forest
Waltham Forest has announced plans for two new conservation areas near Lloyd Park and Bakers Arms town centre.
Read Article ... Published on 20th May, 2015
Sutton Council announces Take Part Take Pride summer festival
Sutton Council has announced its Take Part Take Pride summer festival.
Read Article ... Published on 20th May, 2015
Brent Council teams with Brent Housing Partnership in new project
Brent Council has partnered with the Brent Housing Partnership as it aims to improve the standard of housing for local people.
Read Article ... Published on 19th May, 2015
Gardeners prepare for Islington In Bloom
Islington Council is preparing for this year’s “In Bloom” event by teaming up with local gardeners to identify the best greenery available in the area.
Read Article ... Published on 15th May, 2015
New fitness centre set to open in Manor Park
A new fitness centre is expected to be opened in Manor Park by Newham Council.
Read Article ... Published on 15th May, 2015
The Royal Institution of Chartered Surveyors (Rics) has renewed its warning that thousands of homeowners face the prospect of negative equity.