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| Housing group gives four-year negative equity warning | Housing group gives four-year negative equity warning |
| (40 minutes later) | |
| Homeowners who bought at the peak of the market may face four more years of negative equity, a housing group has warned. | Homeowners who bought at the peak of the market may face four more years of negative equity, a housing group has warned. |
| The National Housing Federation (NHF) said the average buyer paid £216,800 for a home in 2007. | The National Housing Federation (NHF) said the average buyer paid £216,800 for a home in 2007. |
| They may now have to wait until 2014 before prices recover enough to make their homes worth more than they paid. | They may now have to wait until 2014 before prices recover enough to make their homes worth more than they paid. |
| The organisation, which campaigns for affordable housing, also said prices are still too high for many buyers. | The organisation, which campaigns for affordable housing, also said prices are still too high for many buyers. |
| 'Perfect storm' | 'Perfect storm' |
| According to the NHF, house prices will dip again next year by 3%, before steadily climbing thereafter. | According to the NHF, house prices will dip again next year by 3%, before steadily climbing thereafter. |
| The federation expects prices to be 22% higher by 2015 than they were in 2009, bringing the average price of a house to £226,900. | The federation expects prices to be 22% higher by 2015 than they were in 2009, bringing the average price of a house to £226,900. |
| "A combination of circumstances in the market have made it very, very difficult for house prices to recover," NHF chief executive David Orr told the BBC. | "A combination of circumstances in the market have made it very, very difficult for house prices to recover," NHF chief executive David Orr told the BBC. |
| "But actually the big problem that we have is that we've created a kind of perfect storm where there is negative equity for some people and they're trapped and can't move, but prices haven't come down enough to make buying a home a realistic option for people in their 20s and 30s in ordinary jobs. | "But actually the big problem that we have is that we've created a kind of perfect storm where there is negative equity for some people and they're trapped and can't move, but prices haven't come down enough to make buying a home a realistic option for people in their 20s and 30s in ordinary jobs. |
| "We really are in danger of pricing people out of owner-occupation." | "We really are in danger of pricing people out of owner-occupation." |
| He also criticised government decisions to scrap regional house-building targets and withdraw funding for affordable housing. | He also criticised government decisions to scrap regional house-building targets and withdraw funding for affordable housing. |
| "Proposed caps on housing benefit payments could also put nearly a million people on low incomes at risk of losing their home," he added. | "Proposed caps on housing benefit payments could also put nearly a million people on low incomes at risk of losing their home," he added. |
| Are you in negative equity? Or are you a first time buyer? You can send us your experiences using the form below: |