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Home owners face four more years of negative equity, says NHF
01/09/10
Edited by Tom Bardsley.Home owners who bought at the height of the residential property boom face being trapped in negative equity until at least 2014, the National Housing Federation (NHF) has warned.
The organisation said "tens of thousands" of household across England are affected.
According to its figures, people who bought a home at the market's peak in 2007 typically paid £216,800 for the property.
Based on forecasts from Oxford Economics, they will not be able to recoup their original investment until 2014, when the typical value of a home is expected to top £226,900.
According to the Land Registry, the average price of a home in England and Wales stood at £166,798 in July.
Overall, the NHF said residential property values will rise by 22 per cent over the next five years because of a "chronic undersupply of new housing".
The NHF noted that in 2009-10, builders started work on 87,360 new homes in England - enough to meet the demand of just one-third of the new households forming each year.
