More than nine in 10 recent UK homebuyers are concerned that changes in the housing market could reduce the equity in their property, while 44% believe they could enter negative equity during their current mortgage term, according to research by Boon Brokers.

The survey of 1,000 UK homeowners who bought a property with a mortgage within the past five years found that 91% had at least some concern about losing housing equity, including 47% who were very or extremely concerned. Only 9% said they had no concerns.

Younger homeowners were particularly worried about negative equity. More than half (56%) of buyers aged 25 to 34 believed they were likely to enter negative equity during their mortgage term, compared with 51% of those aged 35 to 44, 26% of those aged 45 to 54, 21% of those aged 55 to 64 and 15% of over-65s.

Gerard Boon, managing director, Boon Brokers, said: "These findings outline that younger homebuyers today are thinking far beyond simply getting onto the property ladder. They’re considering how future market conditions could affect the equity they build over the lifetime of their mortgage."

London recorded the highest level of concern among the major cities surveyed, with 51% of respondents believing they were likely to enter negative equity during their mortgage term. This compared with 49% in Nottingham, 48% in Birmingham, 35% in Manchester and 27% in Leeds. London also had the highest proportion of respondents who were very or extremely concerned about losing housing equity, at 57%.

The survey, which was conducted by TLF Research, also found that higher mortgage repayments were the most commonly cited individual housing market concern, selected by 33% of respondents. Negative equity was second at 24%, followed by falling property values at 14%, being unable to remortgage at 11% and difficulty selling a property at 9%.

All in all, negative equity and falling property values accounted for 38% of responses, reaffirming the prominence of concerns around housing equity.

However, the research also revealed a significant disconnect between current perceptions of property values and fears about the future. Almost six in 10 (58%) recent buyers believed their property had increased in value since purchase, while 24% thought its value had remained broadly unchanged and only 17% believed it had fallen.

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