Liberal Democrats in Waltham Forest have reacted with concern to new figures which reveal that Waltham Forest has suffered the biggest “negative change” in property prices of any London borough.

And Lib Dem Council Group Leader John Macklin is asking for reassurances that the collapse in property values will not further delay long-awaited redevelopment schemes across the borough.

The news comes after Lib Dem councillors warned earlier this year that Walthamstow homeowners faced an “above average” risk of suffering from negative equity.

The new figures, published in HotProperty magazine, show that Waltham Forest has suffered heavily from the collapse in property prices in comparison with other London boroughs.  The latest Land Registry figures show that the average property price in the borough is down 9.4% in the last year, with a huge 5% fall being suffered in the last quarter.  The rapid collapse means many local homeowners are now at risk from negative equity.

Local Lib Dems sounded a warning over the heightened risk of negative equity for local property owners back in March after figures released by credit rating agency Experian predicted that Walthamstow residents could be amongst the worst sufferers of the economic downturn, with those who had bought property within the last 12 months expected to be the worst hit.

At the time, local Liberal Democrat leader and Walthamstow councillor John Macklin urged government intervention to prevent mass repossessions, which, he said, would only worsen the housing crash.

Now this week he has expressed his concern about the effect that the crash in property prices will have on building projects within the borough.

Cllr Macklin said:

“The collapse in property prices is bound to have an effect on regeneration projects in the borough, and I will be looking for clarification from the relevant portfolio holders regarding the timetables for work on these projects.

“As I have said before, a series of unused ‘land banks’ across the borough awaiting regeneration is just not acceptable”.

Fellow Walthamstow councillor and deputy Lib Dem leader Cllr Johar Khan has spoken out about the situation in Waltham Forest, noting that the collapse in house prices would “cause misery for those who could end up owing more on their mortgages than their property will be worth.”

Cllr Khan continued:

“Waltham Forest looks like it will be hit particularly hard by this recession and the collapse in house prices.  Sadly, the anguish this will cause local homeowners has been all too easy to predict.

“The government has allowed house prices and irresponsible mortgage lending to rocket alomost unchecked, and this competely irresponsbile approach is now resulting in dire consequences for residents.