16 Aug

Southern property flourishes as negative equity drops

Southern property flourishes as negative equity drops

Those looking for property for sale in Cornwall could be more likely to gain a mortgage as homeowners in the south are less likely to be in negative equity, a survey has found.

Arrears in the south have fallen since the beginning of last year while further north mortgage borrowers were found to be 35 per cent more likely to be at least 30 days in arrears on their payments in the first three months of the year.

The report was carried out by Standard & Poor's (S&P) and it showed that in the capital, the number of home loans in arrears fell from 3.2 per cent to three per cent. In Yorkshire and the Humber, arrears increased from 3.9 per cent to 4.1 per cent while in Scotland the number went up from 3.2 per cent to 3.4 per cent. This clearly shows a widening north/south gap in property.

Mark Boyce, credit analyst at S&P, said: "We believe the widening north-south gap in arrears is partly due to the significantly more robust employment trends evident in the south of the UK since the start of the recent downturn in 2007, compared with the trends in the north."

S&P is known to investors worldwide as a leader of financial market intelligence.

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