UK citizens can rejoice as the job market is at its strongest point in several years. Unemployment is currently at its lowest rate since the 1970’s. But with all the progress the job market has made, the housing market is still stuck in a prolonged slump.
Housing Market In Downward Spiral
Property values had held steady since the month of May, but August hit the UK hard. Prices dipped 0.1% month-to-month to an average cost of £210,495. If that wasn’t concerning enough for homeowners and potential buyers, mortgage approvals have slipped to record lows as well. The price of £65,000 is the lowest number seen in more than nine months.
The biggest issue in the current UK housing market is lack of investors. With unstable times still in store, home buyers, especially first-time buyers, are extremely hesitant to invest in the market. Hesitance seems to only be growing at this point – in the immediate aftermath of the Brexit decision, the housing market remained steady. That is obviously no longer the case.
Nationwide, the UK financial institution, still holds out hope that the housing market will recover in the near future. The company expects the overall housing prices to increase by 2% this year. But, there is a catch to this. It is believed that the housing prices will rise merely because of the decline of new homes on the market. Citizens can take the 2% growth projection as good news or bad news.
Job Market Soars
Thanks to the ongoing Brexit negotiations, the housing market has yet to recover. But, the job market is the one exception to this turbulent era in UK history so far. The official unemployment rate of 4.4% is the lowest rate seen across the nation in over forty years. In the three months prior to June, 125,000 jobs were created – incredible numbers for a country stuck in political upheaval.