From This is Money:
The findings by Savills will depress Britons who bought houses recently and face living in negative equity for up to eight years.
As their mortgages will be bigger than the value of their homes, they will be trapped in properties they cannot afford to sell.
A separate report found one in ten homeowners could be in negative equity by next year.
Research by the Sanford Bernstein bank found house prices could plunge as much as 35% from last summer’s peak.
A drop of that magnitude would saddle 1.3m households – or 11% of the total – with mortgages worth more than the price of their home.
The prediction by Savills was less severe, with the estate agents predicting a fall of 25% by the end of 2009 from last year’s peak.
It believes prices will eventually recover, but the timing will depend on where you live.
In the South-East and Scotland, prices are predicted to return to their peak 2007 levels in 2012. The South-West, London, the East of England and East Midlands will make…
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