Negative equity is already playing it’s part in stifling the property market and it is set to make matters worse. If prices do drop by another 40% (according to MoneyWeek) or more, over the next few years the number of people finding themselves in negative equity is likely to increase substantially. The actual number of homeowners facing the prospect of negative equity is difficult to quantify because there is limited and conflicting data available. According to the Bank of England between 7% and 11% of UK homeowners are now in negative equity a recent report suggests this equates to between 700,000 and 1,100,000 people. If
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