Safe as Houses ?

Property prices are expected to tumble 20 percent this year, taking the average British property value to 153,400 pounds from 196,000 pounds -- the same level as spring 2004 levels.

That means that, on average, people who have bought since then will be sitting on a capital loss.

Not all, however, will face negative equity, as some will have taken out a mortgage of less than 100 percent or more of the purchase price.While a capital loss is beyond the control of homeowners, mortgage borrowers can overcome negative equity by reducing the size of their outstanding mortgage compared to the value of the property."