Home Owners in Negative Equity

Falling house prices in Britain have left over a million householders experiencing the problem of negative equity, with their outstanding mortgages greater than the current value of their homes. This report provides detailed evidence of the characteristics and housing market behaviour of households in negative equity. Drawing on a social survey of 1200 homeowners in Bristol, Luton and Glasgow, it examines the types of homes affected, the effect on family lives, the circumstances that brought their present situation about, and the strategies that are being employed to cope with the problem. The report concludes with a discussion of the policy implications and options for helping those who have been affected.