Shadow Economic Affairs Minister, Michael Fabricant, has expressed
concern that falling house prices revealed by the survey published today
by the Royal Institution of Chartered Surveyors may herald an onset of
widespread negative equity by overstretched home owners. "With property
prices in Lichfield booming and being some of the highest in the country
outside London, I have particular concerns for my constituents with high
mortgages. I have tabled urgent questions to the Chancellor of the
Exchequer today asking what estimate the Treasury has made of the number
of homes now with negative equity.

"While property owners should be aware that house prices can go down as
well as up, it is an issue which should concern government as negative
equity in property can have wider damaging effects on our economy"
Michael says.

The RICS survey revealed that house prices are falling at their fastest
rate for 12 years as buyers hold back. High interest rates have cooled
the market, causing the lowest number of property sales since 1995 and
the sharpest decline in house prices since 1992, the Royal Institution
of Chartered Surveyors (RICS) reports. The survey indicates that 41 per
cent more chartered surveyors contacted by the RICS experienced a
decline in prices in October than experienced a rise. The balance fell
sharply from the September reading of 30 per cent, and was the worst
reading since December 1992. Just 3 per cent of surveyors said that
prices were rising, with the rest saying that they were stable or
falling.