Monday, 1 December 2008


As proceedings to repossess homes for non-payment of mortgages rise in number, a timely report from the Institute for Social and Economic Research, has concluded that falling house prices lead to more couples splitting up. Indeed the report states that “the partnership dissolution decision of owner-occupier couples is particularly responsive to unanticipated adverse real house price movements compared to unexpected gains”. In other words when your major asset loses £25,000 of its value and potentially plunges you into negative equity, it puts pressure on your relationship.

However, it would appear that a decrease in house values is not all bad news for couples, well not if they are living in the rented sector anyway. In such times, those couples are more likely to stick together as the prospect of being able to buy a property together becomes more feasible.

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