HOME owners are being advised to stay calm after it was revealed more than 23,000 people in the UK faced owing lenders more than their property was worth.

Data from the Council of Mortgage Lenders shows that more than 23,000 people who took out 100 per cent mortgages in the year to March 31 could be facing negative equity due to falling property values.

Latest figures from the Land Registry show that every borough of East Lancashire except the Ribble Valley, saw values fall during the first quarter of 2008.

In total, Lancashire has seen an average drop in house values of 5.5 per cent, with the average detached property now worth £290,449, semi-detached £159,067, and terraced house £102,767.

Graham Ireland, conveyancing partner with East Lancs law firm Haworth and Nuttall, warned falling values would mean those who bought a property using a 100 per cent mortgage last year could face negative equity - owing more to the mortgage lender than the house is actually worth.

However, Mr Ireland has urged home owners to stay calm. He said: "The key message from property professionals is that this reduction in property values is only temporary.

"Prices are subject to regular increases and falls, and I would advise owners to stay calm, prioritise their mortgage payments, and wait for property values to increase again."