Mortgage holders 'could see price of home drop'

25 August 2009

Written by Simon Whittaker

It remains to be seen if the rising unemployment figures in the UK have an effect on the price of property, according to Selwyn Lim, director of online property information portal Mouseprice.com.

Those with buy to let mortgage products and other types of home loan could yet see the value of their assets weaken in the coming months, it would seem.

Mr Lim said that those who think unemployment will have an impact on the value of housing are "pessimists".

"Unemployment is one of the lagging economic indicators with regards to economic cycles," he explained. "Typically, if the past is anything to go by, it is the last indicator that tends to keep heading downwards while there is a turnaround in other indicators."

The industry expert added that there have been a number of reports citing an upturn in the property market, but some observers are waiting to see what rising jobless figures will do to the sector.

Earlier this month, official statistics showed that unemployment in the UK had surpassed 2.4 million.

Why not take a look at our best Buy to Let mortgages and make an enquiry online now.