Many could lose their jobs as a result of the housing slump
Most of us are well aware that the UK is experiencing a housing slump that has been likened to that seen in the darker days of the early 1990s. Homeowners that are trying to sell their homes are experiencing real difficulties at the moment for a number of reasons. One of the major factors affecting house sales is the lack of mortgages and tight credit conditions in play, which are stopping those interested in buying from getting a suitable mortgage. Another major factor is the fact that house prices are rapidly falling, and many would be buyers are now too nervous to take the plunge in case house prices fall further once they have made the purchase.
Recent reports have shown that estate agents are suffering really poor sales figures, with performance worse than it has been in many years. Homeowners that are trying to sell their properties are finding that they are sitting on estate agents’ books for far longer than the norm, and even when they do sell buyers are offering ridiculously low prices for the properties safe in the knowledge that this has become a buyer’s market in a relatively short space of time.
However, officials are now warning that the situation has reached a point where many different industries could be affected in terms of employment and business levels, and this could further add to the financial woes that the whole nation is experiencing. Of course, one of the worst hit industry areas that will suffer as a result of poor property sales is the estate agency industry, and according to recent figures up to fifteen thousand estate agents could end up losing their jobs due to this situation.
It is not only estate agents that will suffer, however, as there are many other industry professionals whose career is based on the sale of property, and this includes industries and workers such as property lawyers or solicitors, builders and construction workers, tradesmen such as electricians and plumbers, independent financial advisors, financial industry workers, surveyors, and even furniture retailers. All in all the housing slump could lead to job losses in a variety of industries.
Removal firms will also be hard hit by the situation, and firms such as these will suffer a double hit. Not only are they facing a severe reduction in business due to lack of property sales, but have also been hit hard by rising petrol costs, which makes it more expensive for them to carry out their business.
According to one official the problems that estate agents are suffering all stem from the global credit crunch and lack of finance for potential buyers.
He said: ‘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.’
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