Negative equity woe as prices drop
House prices fell at their fastest rate since the 1990s house price crash during March as fears grew over the looming threat of negative equity hitting homeowners.
Britain's biggest lender Halifax said the average cost of a home dropped by 2.5% during the month, the biggest monthly fall since September 1992 and the second largest drop ever.
The news came as Manchester, Glasgow, south-east London and Birmingham were said to be potential "negative equity hot spots", as the value of the average home is only a modest amount above the mortgage on the property.
These areas are most susceptible to a fall in house prices and people face having their homes repossessed or may find themselves unable to move or take out a new mortgage.
The analysis, from Experian, one of the country's largest credit reference agencies, is based on information from more than 80% of Britain's lenders.
Annual house price growth also slowed to just 1.1%, its lowest level for 12 years, meaning property prices are now falling in real terms on an annual basis.
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