Impact of falling house prices 'depends on number of factors'
Negative equity is more likely to be an issue for those who have purchased their home "over the last couple of years", although how much of a problem this poses can vary.
That is according to Paul Holmes, operations director of Firstrung, who said that the impact of falling house prices on a homeowner depends on various factors, such as the deposit they have put down.
In addition, he noted that any home improvements could serve to increase the value of a property, thus limiting the effect of a drop in house prices.
Mr Holmes said that property owners could continue to make such improvements if they ensured that they are well placed to meet their mortgage payments.
He commented: "As long as you focus on the fact you can pay your mortgage and it is your home you may be able to make certain improvements and afford to make improvements again over the life time of the mortgage."
UK Property News posted on 15/05/2008 13:15:37
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