Almost a quarter of young homeowners are worried about experiencing negative equity as a result of falling property prices, according to a survey by Fool.co.uk.
The survey also found one in eight homeowners aged 24-34 have put off plans to move until the housing market situation becomes clearer, while a similar number have decided to buy property if prices continue to fall.
The website said fear among young homeowners provides further evidence that stamp duty thresholds should be raised to stimulate the housing market.
The Fool.co.uk survey of those who have yet to work through a recession found 23% of young homeowners worried about negative equity.
Furthermore, 18% admitted to making regular enquiries about the value of their home, fearing property prices could plummet further.
More than half of the respondents say they plan to keep a hold of their current property to ride out the credit crunch and 13% have cancelled plans to move house because of the ongoing crisis.
Commenting on the findings, David Kuo, head of personal finance at Fool.co.uk, says: "Young people who have not experienced previous recessions are understandably worried about the property market. They include both those who have just bought their first house and those who want to get on the ladder, but whose hopes are being dashed by over-cautious lenders.
"It is important to provide as much assistance to first-time buyers because they are the lifeblood of a healthy property market. So Fool.co.uk is calling on the Government to abolish stamp duty for first-time buyers for properties up to £190,000.”
He says the lower stamp duty threshold would now be £190,000 if it had risen in line with house price inflation since 1993 and said the Government should not be making matters worse for first time buyers at a time when they are struggling financially.
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