Homeowners could be trapped in negative equity until 2020s

HOMEOWNERS trapped in negative equity could be stuck there for the next 14 years.

It is estimated that between 300,000 to 350,000 homeowners in Ireland are in various stages of negative equity — where the value of their property is worth less than the balance owed on the mortgage.

Based on house price figures from the Central Statistics Office (CSO), a property that was purchased in early 2007 for €311,000 would be worth about €177,000 today — a 43% drop. This property could be worth less than €170,000 by the end of this year if prices keep falling by at least 1% per month.