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Recession virgins ‘living in fear’

A new poll has revealed that homeowners are terrified of falling into an all too familiar trap.

According to consumer website Fool.co.uk:

• 23% of 24 and 34 year olds polled (who had not worked through a recession) were worried about falling in the negative equity trap.
  
• 20% of people had made regular enquiries about the value of their home over the past three months.
  
• Over 55%  planned to wait it out in the hope of avoiding the credit crunch and falling house prices.
  
• Almost 15% had put plans to move on hold.
  
• 13% of 'recession virgins' were actually encouraged to enter the housing market.

David Kuo, head of personal finance at Fool.co.uk, said: "Young people who have not experienced previous recessions are understandably worried about the property market.

"They include both those who have just bought their first house and those who want to get on the ladder -- but whose hopes are being dashed by over-cautious lenders."

"The Government has a hole to plug in its finances, but picking the pockets of first-time buyers is not the right way to go about it".