50,000 homeowners fall into negative equity

The findings from the National Institute of Economic and Social Research (Niesr) comes just a week after Nationwide said that house prices fell at their fastest rate in 14 years in August – dropping by 5.3% in the month when compared to the same period last year. 

Niesr economist Max Mosley told The Telegraph: “Mortgage holders across the country have had to endure Covid, a cost-of-living crisis and now a cost-of-owning crisis.”

The research institute’s figures are based on the Office for National Statistics’ latest wealth and assets survey, which found that – while far fewer households are in negative equity compared with the financial crisis – many more households are likely to run into difficulties in the month ahead.