Last October we estimated that the current housing market correction would leave some 2.5 million households with at least some degree of negative equity. CML estimates, published yesterday, that roughly 900,000 households have already been affected seem broadly consistent with that projection. But, as we have since cut our forecast for the peak-to-trough fall in house prices, from 35% to a fall of at least 40%, if anything that 2.5 million figure may be underestimating the scale of the problem.
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