GE report that drops in house prices unlikely to be devastating

With the media focused on reporting any minor sign of a downtun in the UK property market (let us remember that prices for property for sale in Central London are still higher than a year ago!), it's good to have some common sense commentary from GE, as reported in Money Marketing.

Essentially what they are saying is that people who bought even a only couple of years ago are sitting on such massive capital appreciation that any minor drop is unlikely to affect the market by pushing significant numbers of people in to negative equity, as we saw in 1992.

This is especially true in prime areas of London, where very few buyers with over stretched financing have bought compared to the rest of the UK.