Unemployment 'may affect house prices'

25-Aug-2009

The rate of unemployment may be a factor that affects the housing market, in news that could be of interest to first-time buyers.

While there has recently been an upturn in the industry, the impact of joblessness in the UK may yet be felt.

This is according to Mouseprice.com, which stated unemployment rates tend to be the last thing to turn around in a recession.

Selwyn Lim, director of the housing data website, said: "Unemployment is one of the lagging economic indicators with regards to economic cycles.

"Recently there has been a slight upturn in the property market, with various industries coming out with more positive news."

He went on to add there are "pessimists" who believe there will be a double dip recession, which could impact on first-time buyers.

In conclusion, Mr Lim remarked that it remains to be seen how the industry will fare.

The Office for National Statistics recently revealed the unemployment rate as 2.43 million, representing an increase of 750,000 compared to August last year.

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