Nearly 25% of Dutch house owners will be in negative equity by the end of 2012, ING economists forecast in their quarterly monitor on the housing market.

The economists base their calculation on a further fall in houses prices this year and in 2013 of 5%. This estimate is based on the housing market regulations put forward for 2013 in the five-party austerity package.
Around 3.5 million households have a mortgage on their home. In mid-2011, 517,000 owners were in negative equity, a figure that is set to rise to 800,000, say the economists.
However, they point out this figure does not take account of possible financial buffers. Some of the 800,000 will be able to pay off the negative equity with savings or other capital.
They calculate this will leave around 200,000 families with negative equity of €30,000 or more, while half of them saved just €16,000 in 2011.