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Unemployment levels could rise due to housing slump

July 24, 2008 by admin  
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The housing slump in the UK has been making the headlines on a regular basis over recent months, with house prices already having tumbled and with predictions that they will fall further over the coming months. This in itself has put potential buyers off because many are worried that house prices will continue to fall once they have purchased a property, and that they could then be left facing negative equity.

Another factor that has affected house sales in the UK is the lack of mortgages, which has stemmed from the global credit crunch. Lenders have cut the number of mortgage products by two thirds since last summer, since the onset of the credit crunch, and the tighter lending conditions in place means that many people that may have wanted to purchase a home simply cannot get the finance that they need.

As a result many estate agents have seen properties left festering on their books when they have gone up for sale, and the slump in housing sales could result in around fifteen thousand estate agents losing their jobs, according to some officials.

One industry official said that estate agents’ problems were the result of the credit crunch, stating: ‘The irony is that there is no shortage of people who want to move house, but without mortgages they just can’t do so. Estate agents are having to close because there just isn’t enough movement in the housing market and that is likely to have a much wider impact because a healthy housing market is essential for the health of the high street.’

The jobs of other officials in related industries are also set to be affected, and this includes solicitors, removal firms, builders, decorators, tradesmen, and furniture retailers.

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  1. Big Losses Expected For Insurance Companies says:
    July 24, 2008 at 2:34 pm

    [...] Unemployment levels could rise due to housing slump [...]



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