NI property owners still concerned about negative equity

By Michelle Rock

A new survey has revealed that while 10 out of the 12 regions of the UK are now worried about the increase in property prices in their area, only Northern Ireland and one other region are still concerned about negative equity.

The survey by the consumer group HomeOwners' Alliance found that almost all of the UK regions were more concerned about escalating property prices or the lack of housing rather than a negative equity problem. Respondents from the North East of England and Northern Ireland highlighted negative equity as their main concern about their regional property market. The overall survey results found that 39 per cent were concerned about growing house prices, 33 per cent were worried at the lack of housing, and 25 per cent saw negative equity as the biggest problem.

Northern Ireland house prices fell the most during the recession years following a property boom. Homeowners who purchased during the peak years of the boom have seen their properties decrease in value by as much as 50 per cent. That, added to the slower recovery of the market in Northern Ireland compared with the rest of the UK, means that many homeowners will have to live with negative equity for some years. Many are taking advantage of the frozen interest rate to overpay on their mortgage to chip away at the negative equity.

If you are buying, selling or remortgaging a property in Northern Ireland, and require a conveyancing solicitor to handle the legal process for you, contact Wilson Nesbitt by calling 0800 840 9290.

 

(Image rights reserved by Images_of_Money)