This week we have heard the phrase “age of austerity” by George Osbourne at the Conservative Party Conference; in effect referring to a period of greater financial prudence as the UK reduces its budget deficit. So what will this mean for property prices?
Already announcements have been made to prune £7bn off the mountain of debt, but clearly there is much more to come.
As yet no one has said that there will be job cuts in the public sector, but it seems impossible to achieve the savings required without job cuts. Clearly higher unemployment is going to affect property prices.
Another subject not yet receiving much attention is tax increases. The level of savings needed to reduce public debt are likely to require substantial increases in tax revenues, leaving us all with less money to spend. Clearly such action is again going to impact on property prices.
Over the next few months each of the main political parties will unveil more details on how the budget deficit will be addressed, as they do it will become clearer on how we are all going to be affected, and in particular for this blog, how it will impact property prices.
Visit our blog again later for further updates on the impact on UK property prices.
