Posts with tag: unemployment

Unemployment holding back North East property prices?

Published On: May 22, 2015 at 11:48 am


Categories: Landlord News

Tags: ,,

A recent study has indicated that house prices in the North East of England are being held back by high unemployment rates in the region. This claims come despite the fact that joblessness in the area has fallen by 25% over recent years.

Employment property links

The survey from Lloyds bank shows that property values in areas of the UK with high unemployment have increased more slowly in the last six years, in comparison to regions with smaller numbers of people out of work.

At present, the unemployment rate in the North East of England is 7.5%, encouragingly 2.5% less than one year ago. However, this is still 25% greater than the national average of 5.6%.[1]

In places such as Dorset and Surrey, where unemployment rates are at their lowest, property prices have risen by an average of £65,000. In the top-twenty areas where unemployment is at its highest, prices have only risen by an average of £4,000. These areas include places such as Hartlepool, South Tyneside and Middlesbrough.[1]

North East growth

Additional research from Lloyds has found that the North East has currently has the highest rate of business activity within the UK. What’s more, the region is experiencing continuing export growth, with the gross value of goods sold overseas rising by 7.2%, in comparison to a 3.9% fall in the UK as a whole.[1]

Unemployment holding back North East property prices?

Unemployment holding back North East property prices?

On saying this, recent investigations from the University of Sheffield revealed that as many as six times more public sector jobs fell in the North East in comparison to London since 2008.[1]

Deeper truth

Founder and Chief Executive of North East sales and letting business KIS, Ajay Jagota, gave an honest response to the figures. Jagota stated that, ‘“It might seem like it’s stating the obvious to say that house prices are lower where less people are in work, but these figures show a deeper truth about the North East economy – and in particular why our region needs to have more power transferred to it from London.’

‘Unemployment is falling in our region, but is still the highest in the country by a considerable margin. It’s little coincidence that we’ve lost 6 times as many public sector workers than the rest of the UK,’[1]

Jagota went on to say that ,’ there’s a lot to be proud of in our economy right now, high exports, high business activity and falling unemployment. If unemployment does lead to lower house price growth, a housing boom could be just around the corner.’ He warns however that this, ‘depends on how we build on our recent progress.’[1]

He concluded by saying, ‘The North East economy is currently at what I call the ‘proving’ stage. It might not look like it’s doing all that much, but kept in the right conditions and it could double in size before your eyes. For me, one of those conditions is greater economic autonomy.’[1]




As Unemployment Increases so are Rent Arrears

Published On: December 31, 2011 at 3:48 pm


Categories: Finance News

Tags: ,,

A record 375 people a day will go bankrupt next year, according to predictions by debt experts. This is due to the level of unemployment mounting.

If these forecasts are correct, then the 137,500 total would be an increase of 10% on this year, and 2,400 more than in 2010. Despite this, the Insolvency Service, an executive agency of the Department for Business, Innovation and Skills, has had budget cuts of 15%, resulting in the loss of one in five staff members.

Mike Thomas is a finance expert and founder of, a service offering debt solutions and free advice. He cautioned: “I fear next year will be the worst since records began in 1960.”

As Unemployment Increases so are Rent Arrears

As Unemployment Increases so are Rent Arrears

He found the reason for this to be the amount of people avoiding creditors, who will be “pushed” into unemployment after public sector spending cuts. “A lot of people have been putting off, ducking and diving, moving home every six months in the hope that creditors don’t catch up with them,” he warns.

These comments were made just 24 hours after a report exposed that UK job predictions were the worst for 20 years, with unemployment expected to continue rising into 2013.

Debt agencies have therefore advised people to get help if needed. If people have spent too much over Christmas, they are urged to seek attention promptly.

The Insolvency Service, who deal with affairs of bankruptcy, have released figures that reveal more young people than ever are approaching Debt Relief Orders (DRO) to protect themselves from creditors. Declaring bankruptcy costs £700, whereas a DRO costs just £90

A quarter of the 44,000 people who have taken out DROs are aged 25-34. The Consumer Credit Counselling Service’s Una Farrell explains, “These figures highlight the difficult financial situation many young adults are in. Many face a future of higher debts and fewer assets than older generations.”

The causes of this could be the lack of job opportunities, rising costs of university fees, and the amount of legal loan sharks. The number of 16-24 year olds out of work last month passed 1 million. This is the highest total on record.

The Chief Executive of the Money Advice Trust, Joanna Elson mentioned that many of the struggling 25-34 year olds might have expected to be further up the financial ladder by now. “At the same age their parents would most likely have bought their first home, have a comfortable pension lined up and be saving for the future,” she says. “For today’s young people the picture is much bleaker.”

It has also emerged that 78,970 people owe their landlords at least two months’ rent, the highest level since 2008. The number of people in severe arrears has additionally gone up 11,400 in the past year.

Nevertheless, the overall level of tenants in England and Wales who still owe rent is falling, at just 9.3% of all unpaid or late rent in November.

These figures were published by Templeton LPA, chartered surveyors, who said: “Given the challenges we face and the worsening labour market, we anticipate overall arrears and severe arrears will rise in 2012. This will lead to increased tenant evictions.”1

24,966 tenants were evicted by court order in the last quarter of 2011, which is up from 22,558 a year ago.