Negative equity ‘present in some areas’

Househunters looking to buy a house in Scotland should be aware that the possibility of negative equity is present in some areas.

This comes from Mouseprice, which has pointed to an Experian survey that suggests negative equity may "crop up" in some UK regions in the next few years, news that may be especially pertinent to Scottish first-time buyers.

Jonathan Upton, business development director at the company highlighted that fact that this depends on the profile of the housing market in each respective area, which may be good news for Scottish property buyers since the Halifax House Price Index for March revealed that the Scottish market was still strong.

The house price dip experienced in some areas may be beneficial for first-time buyers, however.

"For people who aren’t on the housing market yet, falling house prices put them in a stronger position in regards to negotiations," Mr Upton commented.

Some 23 per cent of 24 to 34-year-olds are concerned about incurring negative equity on their property, according to Fool.co.uk.