41% of Northern Ireland homeowners trapped by negative equity

A report produced by HML mortgage group states that over half a million households in the UK are affected by negative equity.  

Northern Ireland is the region most severely affected with 41% of homeowners, around 68,000 people, owing more than the current market value of their home.

Property prices in Northern Ireland rose rapidly in 2005 and peaked in 2007.  When the boom ended property prices crashed and have struggled to recover.  While there has been some slow improvement in house prices of late these have failed to make a difference to the negative equity problem.

In recognition of this, Housing Minister, Minister Nelson McCausland, established a Housing Repossessions Taskforce to investigate the issue of negative equity and repossessions in Northern Ireland.

Minister McCausland said, “While there are many hopeful signs beginning to emerge from the Northern Ireland housing market, I continue to be concerned about the considerable number of households facing mortgage difficulties and legal actions for repossession of their homes.  

The Taskforce is due to produce an initial research report detailing the extent and nature of the repossessions issue in Northern Ireland by the end of June 2014.

Read a full copy of the HML report