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Negative equity shown to be in retreat

A recent report has indicated that the national economic recovery has been lifting the price of properties purchased just before the advent of the Great Recession.

Nigel Stockton from Countrywide, which published the report, has said:

“Despite the largest fall in house prices for 25 years, across most of the country the number of first-time buyers who bought at the peak of the market and still find themselves in negative equity is low, which is good news.”

The report demonstrated that only about 20,000 of the 360,000 properties bought in 2007 by first-time purchasers are still being affected by negative equity. This seems to be positive news for the housing market, but the report has confirmed that there is considerable regional variation in the performance of the market.

Although the research has shown that there is little evidence of negative equity in London, the situation in North East England is not quite the same; approximately half of the region’s the first-time buyers from 2007 are suffering from negative equity.

When it comes to Wales and Scotland, the number of people affected by the issue is relatively small, giving the countries’ property owners the resources to afford home improvements, particularly because interest rate levels are still low.

Hardwood flooring in North Wales may become more popular as the economic recovery gathers momentum. Economic growth in the first quarter of 2014 was recorded at a solid 0.8 per cent, which could prove to be sustainable going forward.

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