There has been a sharp drop in the number of Dutch home owners whose properties are worth less than their mortgages, according to US credit ratings company Moody’s, as quoted by the Financieele Dagblad.

Rising house prices and the housing market recovery mean this year one in four homes will remain in negative equity by the end of this year, compared with one in three in 2015, Moody’s said.

The organisation forecasts house prices in the Netherlands will rise 5% this year.

Last month, the national statistics office CBS said prices had risen for the 22nd month in a row as the Dutch market continues to recover from its six-year slump.

The February rise was 3.8% but there were sharp regional variations. Prices have risen by around 8% from the low point of June 2013 but are still below their August 2008 peak.