It seems that grim news is fairly par for the course at the moment.
The FSA kept the trend going last Thursday, when they suggested that 2 million UK homes will be in negative equity by the end of the year.
And that is just the homes that owners live in. In another cheerful piece of information they further suggest that 500,000 buy-to-let houses will join the two million.
In reality what this means is that one in four homeowners would have to find other funds to pay off their homes if they were to sell now. That figure is one in two for the buy-to-let market.
This is a kind of pressure the housing market could well do without at the moment. It is likely to lead to more financial distress for beleaguered homeowners and landlords.
If you are not selling your home you may think that it is no big deal if you are in negative equity but in a lot of cases you will be wrong.
Remortgaging to try to take advantage of the low interest rates in a fixed term deal could also be a nightmare for you.
Remember, banks base their interest rates, in part on your LTV or loan to value rate. If your house has slipped into negative equity you may find yourself paying top dollar when it comes time to re mortgage.
