Homeowners saddled by negative equity

Nearly a fifth of home owners who bought their property in the last five years are now saddled by negative equity, a study has revealed.

Property website Rightmove found that 17 per cent of people who have purchased a home since 2007 have a mortgage balance bigger than the value of their home.

Additionally, the study found that a fifth of home owners believe their house is worth less now than when they paid for it.

Rightmove said it will take more than a modest market recovery to help many people trapped in negative equity move house.