Written question asked by Michael Fabricant (Conservative) on Tuesday, 16 November 2004, in the House of Commons. It was due for an answer on Thursday, 18 November 2004. It was answered by Stephen Timms (Labour) on Thursday, 18 November 2004 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what recent estimate the Treasury has made of the number of households with negative equity in their homes; and if he will make a statement.

Answer: Michael Fabricant: To ask the Chancellor of the Exchequer what recent estimate the Treasury has made of the number of households with negative equity in their homes; and if he will make a statement. [199283] Mr. Timms: The Treasury has made no such estimate. However, the Bank of England's Financial Stability Review highlights that the share of first-time buyers (FTBs) with loan-to-value ratios of over 90 per cent. has fallen back in recent years. Analysis from the Council of Mortgage Lenders, noted that: "It would take significant house price falls for negative equity to resurface as a major issue in the UK", (Housing Finance, Spring 2004).

Secondary information