A study for the Financial Times by the Royal Institution of Chartered Surveyors (RICS) has revealed that housing growth prospects in regions with a significant public sector presence have been hit hardest, with evidence of people being forced to put their properties up for sale.
RICS found that almost 30% of surveyors have seen a rise in the number of people feeling under pressure to sell their homes because of unemployment or the threat of losing their jobs.
In Wales and Yorkshire and Humberside where there is a significant public sector presence, the number of surveyors reporting forced sales rose to half.
More than two-thirds of surveyors said the government’s austerity measures were affecting housing market sentiment, particularly in areas where public sector job cuts will be deepest.
In Northern Ireland, nine out of ten surveyors said that the market has suffered as a result of the government’s measures.
London, an area where surveyors are most confident, has also not escaped the effects of the cutbacks, with just over half of surveyors in the capital saying a “chill” was sweeping the market.
Simon Rubinsohn, chief economist of RICS, said: “The prospect of large spending cuts is clearly having an impact on sentiment in the residential property sector, particularly outside London and the South East.
“Whether the worst fears of our members materialise will ultimately depend on the success of the government’s growth strategy and whether it helps generate both activity and jobs away from the capital.”
