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The Masked Tulip

Job Losses Could Hit House Prices

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http://www.google.com/hostednews/ukpress/article/ALeqM5itcdlxdXNJNbnJ2kFqOVJa2ngLrA?docId=N0328621287394799945A

House prices in areas with high levels of public sector employment look set to be hit disproportionately hard during the coming months, a report has suggested.

The Government is expected to announce heavy public sector job losses in this week's Comprehensive Spending Review, and this is likely to take its toll on local housing markets, property website Zoopla.co.uk said.

Oxford is most likely to be negatively affected, with 46% of people in the city employed in the public sector.

House prices in the town are currently about 4% lower than they were three years ago, at an average of £326,396.

Denbighshire in Wales is also likely to be hit hard, with 45% of people employed by the Government, followed by Cambridge, Middlesbrough and Hastings, all at 43%.

Other local authority areas where 40% or more of local people work in the public sector include Ceredigion in Wales, Canterbury, Stafford and West Dorset.

At the other end of the scale, property values in the City of London are least likely to be affected by announcements in the Comprehensive Spending Review, as just 4% of people in the area are employed in the public sector.

Other local authority areas where house prices may be only marginally affected by cuts include Crawley, Corby, North Warwickshire, Broxbourne in Hertfordshire, North West Leicestershire and Bracknell Forest, all of which have public sector employment levels of less than 15%.

Nicholas Leeming, commercial director of Zoopla.co.uk, said: "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."

I would have htought most of those in Oxford would work in the Uni so I doubt they are going to suffer.

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THE catalyst for devastating house price drops is job losses.

IIRC, more people work in the public sector than private in this country? That is, after taking into account jobs that are dependent on the public sector (Prison contractors, weapons manufactureres etc.).

Want to know what will tip prices over the edge? This is it folks.

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They have just got the government to do more looting for them by increasing tuition fees.

That's just to offset the cuts in Govt funding that are coming (I think I read 18% across the HE sector). So they will still probably be squeezed, but not nearly as much as other Unis whose students will be alot more price-sensitive, and where big hikes in top-up fees could cause a haemorrhage in student numbers. Most younger Uni staff earning around 30K are already completely priced out of the housing market in Oxford, so the impact of job cuts in the public sector might not be as high as in cheaper areas.

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That's just to offset the cuts in Govt funding that are coming (I think I read 18% across the HE sector). So they will still probably be squeezed, but not nearly as much as other Unis whose students will be alot more price-sensitive, and where big hikes in top-up fees could cause a haemorrhage in student numbers. Most younger Uni staff earning around 30K are already completely priced out of the housing market in Oxford, so the impact of job cuts in the public sector might not be as high as in cheaper areas.

So nothing like the £380k primary head teacher has happened at Unis then? Though most "younger Uni staff" are already paid more than the average wage?

Budgets need cutting because wage bills have got too high across the WHOLE public sector. Roll back the top salaries a few years and we wouldn't need any cuts in budgets - the budgets would never have needed to have got so high.

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So nothing like the £380k primary head teacher has happened at Unis then? Though most "younger Uni staff" are already paid more than the average wage?

Budgets need cutting because wage bills have got too high across the WHOLE public sector. Roll back the top salaries a few years and we wouldn't need any cuts in budgets - the budgets would never have needed to have got so high.

No that hasn't happened at Unis, and salaries have been kept down in recent years, they are generally paid less in HE than in schools; 50K is a big salary for a senior member of staff. Academia is no gravy train for younger lecturers. Short contracts, high workload, increasing student numbers with fixed resources, and little career progression. For those in a subject area where there is significant commercial application, private sector salaries are much higher, there's not much scope for salary reduction in most areas.

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.....

Budgets need cutting because wage bills have got too high across the WHOLE public sector. .....

Yeah sure. All those £90K a week dustmen rolling in it. Nothing to do with the banks at all, their management all on 8 quid an hour.

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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