DENBIGHSHIRE’S housing market is set to be hit hard by the recent public sector job cuts, according to figures from national property specialists.
The survey by Zoopla states that property prices in areas with high rates of public sector employment are likely to take a ‘disproportionately hard knock’ over the coming months.
Chancellor George Osborne, announced massive cuts to the public sector, with an estimated 490,000 job losses as part of the Government’s comprehensive spending review,
As a result, the leading property website has examined where house prices in England and Wales are likely to be hit the hardest.
Denbighshire comes second on the list behind Oxford, where almost half the workers, (45 per cent) are employed in the public sector.
Average house prices have already fallen by nine per cent over the past three years to a current level of £146,289.
This will be a huge blow to the area’s economy, with the already ‘toxic’ combination of rising unemployment and welfare cuts nationwide.
"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,” said Nicholas Leeming, commercial director of Zoopla.
“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.
“House prices are likely to be far more resilient in areas with a smaller share of public sector employees."
Chancellor George Osborne has defended the ‘fairness’ of his UK spending cuts after Labour claims they were reckless and would hit the poorest hardest.
He has said that the top 10 per cent of earners would be hit hardest but everyone was making a contribution to cutting the deficit.
Chancellor Osborne has reportedly said that "the path to economic ruin" lay ahead if the deficit was not tackled.
Clwyd West Tory AM Darren Millar believes the county’s housing will be protected.
“I think one of the reasons we have a high proportion of public sector workers in Denbighshire is because we have a hospital in the area,” he said.
“The good news however, is that hospitals are not only to be protected, but also receive investments.
“The only difficulty is that this money is passed onto the Welsh Assembly Government and they don’t have to spend that in the areas designated.
“We have to encourage the Welsh Assembly to use this money in those fields as needed,” he continued.
“I do however, accept that Denbighshire is perhaps too reliant on public sector jobs, but we now have the opportunity to venture into the private sector more.
“There are some real gems in this county, such as Llangollen and the Clwydian Range, and if they are properly promoted then these cuts shouldn't really affect us.
“These cuts concerning the public sector jobs are a bitter pill to swallow, but there are positives, but if we put these changes into place, I am sure the economy of Denbighshire will not suffer.”
John Pritchard, policy manager at Shelter Cymru disagrees.
"The cuts will hit most households in Wales, but will hit the poorest people the hardest,” he said.
“Discussions about spending must take into account that the cuts already announced are likely to lead to increased homelessness, housing need and poverty.
"Amid the many competing pressures on public finances, the Welsh government must maintain its commitment to provide decent homes,” he continued.
“With the acute lack of affordable homes to rent or buy, this is not a luxury to be put on hold until the economy picks up.”