The average UK homeowner has a significant equity cushion, and does not need to worry about negative equity, according to GE Money Home Lending.
Those who bought ten years ago would need to see prices fall by two thirds to experience negative equity, but people who bought more recently could be vulnerable.
Research by GE found the average homeowner who bought in 2004 or earlier has an equity cushion of 48%, meaning prices would have to halve for most Britons to face the prospect of negative equity.
The earlier a property was bought, the better its chances of weathering the market storm, and those who bought in 1995, the bottom of the last housing crash, are the least likely to experience problems.
The average house bought in 1995 had a deposit of 27%, according to GE, and a value of £68,079, meaning house prices would have to fall 72% for them to suffer negative equity.
However, some market commentators suggest prices could fall by as much as a third, leaving those who bought between 2005 and 2007 vulnerable to the downturn.
The average 2007 buyer paid £219,410 with a 28% deposit, and would face negative equity if prices were to fall by 19%.
The statistics reveal London property bought in 1995 is the least vulnerable, with a 73.11% fall in prices needed to cause negative equity. However, those who bought London property in 2005 are the most vulnerable, as prices would only need to fall 42.38% to put them in the red.
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