For the first the time ever in Scotland some Homeowners are finding themselves in Negative Equity. HOMEOWNERS across Scotland are being warned that this year / next year they are likely to face negative equity for the first time. As the housing market north of the border continues to rack up double-digit declines, property experts say Scotland will almost certainly fall victim to widespread negative equity despite avoiding it during the last downturn in the early 1990s. They warn the Scottish property market has been caught off guard by the speed and depth of this recession, and few homeowners, particularly those who bought at the height of the boom, will avoid seeing the value of their houses fall below the size of their mortgage. "Ridiculous" lending such as 100%-plus mortgages in the run-up to the credit crunch is also being blamed. Despite efforts to play down the chances of negative equity by the Council of Mortgage Lenders earlier this year, it is now almost inevitable, even in Edinburgh, which was believed to have one of the most resilient markets in the country. There's more likelihood it'll happen this time round due to the depth and severity of the drop. It's a natural consequence of the slowing market and a result of some of the ridiculous lending that went on. We didn't really see negative equity in 1992/1993 as we did in the south, but I think we'll see it this time. It is expected that certain areas in Glasgow such as Sighthill will be worst hit. Negative equity will cause particular problems for homeowners who need to move over the next 12 months, or for those Scots who are expected to lose their jobs next year and will struggle to meet their mortgage repayments. Negative equity is only really of any relevance if you are in a situation where you have to move. The average house price in Edinburgh fell 20% last month to £181,271. The number of houses sold was a staggering 70% down on November 2007. Plus Council Flats in Muirhouse, Edinburgh Scotland UK are being demolished to make way for new "private housing" . encoded by Richard Easson (Jacques) April 2009