• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

EXCLUSIVE: ‘The Man She Is Today’: European Companies Accused Of ‘Importing’ Woke Ideology

May 29, 2025

‘The Economy Is On Fire!’: Kevin O’Leary Drops Fact Check On CNN Panelists Railing Against Trump’s Economy

May 29, 2025

DeSantis Signs Bill Making Gold And Silver Legal Tender

May 28, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 30
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    EXCLUSIVE: ‘The Man She Is Today’: European Companies Accused Of ‘Importing’ Woke Ideology

    May 29, 2025

    ‘The Economy Is On Fire!’: Kevin O’Leary Drops Fact Check On CNN Panelists Railing Against Trump’s Economy

    May 29, 2025

    DeSantis Signs Bill Making Gold And Silver Legal Tender

    May 28, 2025

    John Deere Announces $20 Billion Plan To Build Up American Manufacturing

    May 28, 2025

    EV Startup Promised To Cut China Ties — Then Reportedly Shared US Data Anyway

    May 27, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»‘Cost of owning crisis’ as 50,000 fall into negative equity
Finance

‘Cost of owning crisis’ as 50,000 fall into negative equity

September 3, 2023No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
‘Cost of owning crisis’ as 50,000 fall into negative equity
Share
Facebook Twitter LinkedIn Pinterest Email
house price crash

house price crash

Homeowners are facing a “cost of owning crisis” as rapidly falling house prices push tens of thousands into negative equity.

The National Institute of Economic and Social Research (Niesr) said August’s sharp drop in house prices meant that 50,000 people had fallen into this predicament over the last 12 months.

It comes after Nationwide said last week that house prices were falling at the fastest rate in 14 years. Average prices dropped by 5.3pc in August compared with the same month last year when values were at their peak.

The slump marked the sharpest fall since July 2009 when the global economy was plunged in the depths of the financial crisis.

Negative equity is where a property is worth less than the value of the mortgage attached to it. It can make it difficult to sell a property or to remortgage, leaving homeowners facing higher monthly repayments when they roll off fixed rate deals.

Max Mosley, an economist at Niesr, said: “Mortgage holders across the country have had to endure Covid, a cost-of-living crisis and now a cost-of-owning crisis.”

Niesr’s figures are based on analysis of the official Wealth and Assets survey conducted by the Office for National Statistics (ONS).

Far fewer households are in negative equity compared with the financial crisis, when prices dropped 20pc peak-to-trough and many more households had mortgages taken out using small or even zero deposits.

However, many more households are likely to run into difficulties in the month ahead. The Office for Budget Responsibility (OBR), the Government’s independent tax and spending watchdog, expects house prices to fall 10pc from their recent peak.

See also  Will the Trump Administration Save TikTok? What’s Next for the Platform

The Resolution Foundation said last year that 190,000 households would fall into negative equity if prices fall by just 8pc.

Nationwide executives told MPs on the Treasury Select Committee last month that around 2pc of its customers had taken out mortgages with a deposit of 10pc or less, leaving them particularly exposed to a large fall in house prices.

However, Henry Jordan, home commercial director at Nationwide, said in July that he expected anyone who fell into negative equity to be there “for a fairly short period” before values rebound. He added that this was unlikely to be a problem for people intending to live in their homes for several years, when house prices are expected to recover.

House prices are falling rapidly as the cumulative impact of repeated rate rises hits the property market.

Bank of England data last week showed the number of mortgage approvals fell to a five-month low in July.

Officials have warned that around four million mortgage borrowers face a sharp rise in monthly payments by the end of 2026, including a million who will suffer a jump of at least £500 a month.

However, there are also signs that interest rates are close to peaking, which will limit a potential mortgage shock. Huw Pill, the Bank’s chief economist, indicated this week that he may not vote to raise interest rates further from their current level of 5.25pc.

While Mr Pill said inflation remained stubbornly high at 6.8pc, he suggested that keeping rates higher for longer would be sufficient to bring price rises back to the Bank’s 2pc target by 2025.

See also  China says drop in trade with U.S. is direct consequence of U.S. moves

Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month, then enjoy 1 year for just $9 with our US-exclusive offer.

Cost Crisis Equity fall negative Owning
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Ending China’s De Minimis Exception Brings 3 Benefits for Americans

April 17, 2025

The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

April 17, 2025

Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

April 17, 2025

How China’s Companies Are Responding to the US Trade War

April 16, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

The job market is strong, economists say — but workers don’t think so

October 3, 2023

Parents Brawl in the Stands at Virginia High School Soccer Game

May 19, 2023

Donald Trump’s Georgia Bail Set at $200K Ahead of His Surrender

August 22, 2023

China turns to rural tourism and smart appliances to boost consumption

August 2, 2023
Don't Miss

EXCLUSIVE: ‘The Man She Is Today’: European Companies Accused Of ‘Importing’ Woke Ideology

Business May 29, 2025

Consumers’ Research issued a “Woke Alert” on Thursday warning American shoppers that three European companies…

‘The Economy Is On Fire!’: Kevin O’Leary Drops Fact Check On CNN Panelists Railing Against Trump’s Economy

May 29, 2025

DeSantis Signs Bill Making Gold And Silver Legal Tender

May 28, 2025

John Deere Announces $20 Billion Plan To Build Up American Manufacturing

May 28, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,136)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,645)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

Tesla 2022 solar roof installations only 2% of last target – report; company denies

March 31, 2023

Save 30% on Elemis Pro-Collagen Overnight Matrix at QVC

April 11, 2024

Ukrainian Port Bombarded in Drone Attack Ahead of Grain Deal Talks

September 6, 2023
Popular Posts

EXCLUSIVE: ‘The Man She Is Today’: European Companies Accused Of ‘Importing’ Woke Ideology

May 29, 2025

‘The Economy Is On Fire!’: Kevin O’Leary Drops Fact Check On CNN Panelists Railing Against Trump’s Economy

May 29, 2025

DeSantis Signs Bill Making Gold And Silver Legal Tender

May 28, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.