Reports about negative equity 'have dented consumer confidence'
Published On 27 April 2008
Recent media reports about the possibility of some homeowners experiencing negative equity has dented first-time buyer confidence, a mortgage advisor has said.Andy Pratt, spokesperson for mortgage advisors Alexander Hall, said that many homeowners and first-time buyers are being conservative and opting to wait before committing to a move.
He explained that much of this uncertainty was centred on fears about negative equity returning to the UK.
"There are a lot of people - home-movers and first-time buyers - who are taking a conservative view and deciding to wait and see what happens, which is obviously very understandable," Mr Pratt added.
"[Reports about negative equity are] creating a little bit of activity in the market, but it's unsure exactly what's going to happen."
In fact, Mr Pratt stressed that most mortgage and property experts only thought the UK housing market would suffer a five per cent correction.
A recent report from Fool.co.uk showed that 23 per cent of homeowners aged between 24 and 34 were now worried about experiencing negative equity.
David Kuo, head of personal finance at Fool.co.uk, said at the time: "Young people who have not experienced previous recessions are understandably worried about the property market."
