Those areas which have the highest rates of public sector employment are at greatest risk from the cuts, to be detailed in Wednesday’s Comprehensive Spending Review.
With 46% of the workforce in the Oxford region currently employed by the State, the knock-on effect on local property prices could be disproportionately harsh.
Property website Zoopla has compiled a list of those areas in England and Wales which are most heavily reliant on the State as an employer.
Oxford leads the way at 46%, followed by Cambridge, Middlesborough, Hastings, Canterbury, Stafford and West Dorset – all areas where public sector employment accounts for over 40% of the workforce.
At least risk are those areas where private sector employment dominates, led by the City of London, where only 4% of the workforce is public sector. Other areas which should be cushioned from the impact of the cuts include Crawley, Corby, North Warwickshire, Broxbourne, North West Leicestershire and Bracknell Forest – all places where public sector employment accounts for under 15% of the workforce.
Nicholas Leeming, Commercial Director of Zoopla.co.uk comments:
“The country is braced for extensive cuts to government spending and a significant number of public sector job losses are anticipated over the coming years. In areas where more people are employed by the state, rising unemployment will lead to more homeowners struggling to pay their mortgages as well as dampening demand from buyers, which will put downward pressure on house prices in these areas. House prices are likely to be far more resilient in areas with a smaller share of public sector employees.”
