mortgage borrowers could face negative equity as house prices start to fall, one of the country's top mortgage lenders has warned.
London properties are expected to be the first hit, leaving people with debts exceeding the value of their homes.
Despite ongoing speculation the housing markets in Kingston and Richmond remain stable although prices are high.
According to Hometrack, the average price of a property in Kingston, KT1, in December was £265,000 compared to £267,000 in October.
In south west London the December average was £249,000.
According to Nationwide building society, some places could become "coldspots" in 2003 due to unsustainable house prices when compared with deprivation.
Kingston and Richmond are thought to be sound, with good economic growth and low deprivation levels.
This means the chances of people falling into negative equity are relatively low.
January 27, 2003 10:00
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