827,000 homes face negative equity

Some 827,000 households were in negative equity in the first quarter of 2011, where the value of their home had dropped to less than their outstanding mortgage, new figures have revealed.

The fall in the housing market since its pre-credit crunch peak means 7% of mortgaged households would owe money if they sold at current prices, according to research carried out by the Council of Mortgage Lenders (CML).