September 2, 2020
This report from UK think tank Resolution Foundation looks at how big will the negative equity crisis be in the aftermath of the coronavirus crisis.
This report for the Resolution Foundation’s Intergenerational Centre focuses on two big questions: what is the likely scale of the possible low equity problem in the aftermath of the coronavirus crisis; and who is likely to be affected? First, the report shows that the scale of the possible low equity problem looks set to be smaller today than in the aftermath of the financial crisis, even in the Office for Budgetary Responsibility’s (OBR) ‘downside’ scenario with respect to house price falls. Second, the group of mortgagors likely to fall into low or negative equity today are more resilient than the same group a decade ago.Read Full Report