Homeowners urged ‘not to panic’ over negative equity

Aaron Turner, founder of UK property website look4aproperty.com has warned people not to panic about the latest news from the Council of Mortgage Lenders.

The CML announced last week that 900,000 homeowners are now in negative equity worth on average between £6,000 and £8,000.

But Turner has said this amount was a ‘drop in the ocean’.

“Those amounts are the kind people negotiate with if they have done up the garden of a house they want to sell,” says Turner.

“If we were looking at £60,000 there would be real cause for concern. But people shouldn’t think they need to do anything – just sit tight, not panic and wait for the economy to recover. When that happens they will make back the money.”