The latest data from the Office for National Statistics published just now states that the rate of unemployment has fallen to just 3.9% of all economically active members of the population. This was already at a low of 4% and was estimated to RISE to 4.4% and so this news is very welcome indeed for the UK economy and for the property market.
One of the fundamentals of ensuring a healthy property market is the ability for property owners and potential buyers to service a mortgage. To be able to afford to buy, in other words.
In recessions and crises of years gone by unemployment has risen and sapped demand for property purchase and consumer goods, pushing us further into the red.
It appears that despite the challenge that we face from Covid 19, the UK Government’s furlough scheme, extended to October and supporting over 8 million workers, is working. Literally.
“This new positive data representing one of the pillars of our economy, employment, is welcome news indeed’, says our expert Russell Quirk. ‘And is another sign that any fall out in property value terms from the current health crisis is going to be muted especially given other factors such as the low cost of mortgages, government stimulus and the pent up demand that we are already seeing unleashed as additional enquiries to estate agents since the sector was ‘unlocked’ last week”.