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Property market pain 'to come'

Property signs
Property signs

by business editor Trevor Sturgess

Kent's property and construction sectors face pain after the government's spending cuts "gamble," according to surveyors.

Ahead of today's launch of the 2010 Kent Property Market report, the RICS warned that the construction industry would suffer from the decision to cut social housebuilding.

It also claimed that private sector homes "may become even less affordable for potential home owners too where the supply is not enough to meet demand."

The sector would also be hit by cuts in school building and may have to cut jobs.

Mark Goodwin, RICS external affairs director, said: "The property and construction sector will certainly feel its share of the general pain, and when this sector hurts, the whole economy hurts more."

The government was "gambling with the economy" by reducing Communities and Local Government capital spending by 74 per cent over the next four years.

"This will have a significant effect on housing supply, especially social housing, which is already at historically low levels."

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