Research conducted by GE Money reveals that the average house bought in 2004 would need to fall by almost half before its value was exceeded by the amount secured on it. By taking the average house price in 2004, along with the average deposit paid in that year, GE Money came up with the reassuring figure. Even someone who purchased a property last year would need prices to fall by a fifth to experience negative equity. Speaking on the findings, Gerry Bell, Head of Mortgage Marketing for GE Money said: "While we have witnessed depreciation in house prices over the last year, the fall in property values has been relatively modest compared with the significant inflation over the past decade or so. For the vast majority of UK consumers, the historic growth in the market has provided a welcome cushion against these falls."
