20 October, 2010
Nicholas Leeming, commercial director of Zoopla.co.uk, commented: "If house-building targets were missed in times of plenty, it seems very unlikely that the new higher housebuilding target of 150,000 affordable homes will be achieved by tinkering with the rents paid by social tenants - and when council budgets are going to be even more stretched.
"The government must now develop a credible and long-sighted plan to tackle the country's housing shortage - and not one which punishes the most vulnerable.
"The spending review will lead to heavy public sector job losses and this will have a damaging effect on local housing markets, particularly in areas such as Oxford, Denbighshire and Middlesbrough, where well over 40% of the local workforce is employed by the state.
"As a consequence of rising unemployment, we will see more homeowners having difficulties keeping up with their mortgage payments and demand from buyers will also drop, which will force down house prices in turn.
"It is essential that the government ensures there is adequate support in place for struggling homeowners to enable them to stay in their homes."
Source: Mortgage Introducer
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