One million homeowners are now in negative equity - and another one million have insufficient equity to move, according to new research published today.
A survey by the Council of Mortgage Lenders (CML) found that housing turnover is being constricted by insufficient equity amongst homeowners.
The CML estimates that 1.1 million homeowners have less than 10 per cent equity in their homes. According to Moneyfacts, there are only 106 mortgage products on the market with a deposit requirement of 10 per cent or less.
Negative equity was last widespread during the early 1990s. But Bob Pannell, CML head of research, told the BBC that this time round it is "more evenly spread across wider age groups and those at different points on the housing ladder," as opposed to being concentrated on first time buyers.
Negative equity should not cause problems for householders unless they wish to move.
