Job cuts weigh heavily on property market
Tuesday, 8 February 2011 12:46 PM
Concerns over job security and employment prospects are having a "depressing effect" on the UK housing market, experts have warned.
According to the Royal Institution of Chartered Surveyors (RICS), Britain's homeowners are reluctant to move house while the economic outlook – and that of the job market – remains shrouded in ambiguity.
Ian Perry, a spokesman for the group, said: "Uncertainty over the prospects for employment, alongside the shortage of mortgage finance particularly for first-time buyers, continues to weigh heavily on transactions levels."
The latest RICS housing survey found that 26 per cent more estate agents had noted a fall rather than a rise in January house prices – only a marginal improvement on the previous month's 29 per cent.
Meanwhile, the number of sales per agency has dropped to its lowest level for 18 months, sliding to an average of just 1.12 transactions a week during the three months to January.
Derek Coates, a RICS member from Liverpool, commented: "Lack of confidence in the economy and housing market in particular is having a depressing effect on the market.
"Recently announced cuts in public sector will further dent confidence in an already fragile market," he added.
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