Property sector faces toughest times in thirty years
August 3, 2008
Officials from the Royal Institute of Chartered Surveyors have recently stated that the UK’s property sector is facing its toughest challenges in thirty years, as house prices plummet and house sales figures go through the floor. Estate agents books are filled with properties that have been left unsold, with the global credit crunch continuing to bite and make it harder for consumers to borrow, and consumers being more cautious about buying due to expectations of further falls in house prices.
Estate agents reported that there had been a drop of 32% on house sales in March of this year compared to the same period last year, and things could get worse according to officials from RICS. Over recent months house prices have fallen, and this has been confirmed by 84% of estate agents. Whilst it was previously thought that some areas had escaped falling property values officials confirmed that it now applied to all regions of England and Wales.
It is thought that fifteen thousand estate agents could lose their jobs as a result of the subdued housing market, and also many people in other related industries could suffer, which will drive up unemployment figures. One official from RICS said: ‘While demand remains weak and housing transactions continue to evaporate, there is a very real danger to the wider economy. The property industry will not be the only casualty in the fall-out from the credit crunch, with the High Street and purveyors of a range of household goods, including furniture and white goods also feeling the pinch. Construction workers such as plumbers and bricklayers will start to see job opportunities dry up as the pace of housing transactions continues to abate.’
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