As many as 1.7 million Britons could be at risk of negative equity, worrying new figures which could lead to a wave of downsizing have warned.
According to
research carried out by Standard & Poors, around 70,000
UK households are currently in the red on the back of recent shifts in the
market.
What's more, this is likely to increase markedly over the coming months, with the rating agency believing that an additional 1.5 per cent of homeowners will fall into the negative equity trap for every one per cent the market falls further.
Andrew South, credit strategist at Standard & Poor's, noted: "Our verdict is that the
house price correction will be sharper but shorter than last time," referencing the housing slump of the early 1990s.
Given these predictions, it shouldn't come as a surprise if a growing number of homeowners choose to sell up and downsize so as to protect themselves from the bane of negative equity, with those doing so likely to benefit from safe storage solutions.
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