Property prices could be affected by unemployment

Homeowners looking to extend their property with a glazed canopy or conservatory may be interested to hear there is growing speculation the housing market could be affected by unemployment.

It is unclear how the number of people out of work will impact house prices going forward and to what extent, according to Bovis Homes.

The company is concerned about the future and expressed its thoughts in a trading status update.

Commenting, director Selwyn Lim said it is yet to be seen how the industry will react to the record low of 72.7 per cent employment rate in the UK.

The total out of work in the three months to June was 2.43 million – a rise of 220,000 on the previous three months and 750,000 year-on-year, according to the Office for National Statistics.

Mr Lim explained: "[There] remains concern about the possible impact on house prices from rising unemployment and from a potential increase in supply of properties for sale in the second-hand market."