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 Rising unemployment has today (June 11th) been labelled as the main reason behind the spectacular slump in the UK housing market.
Recent research from the Office for National Statistics (ONS) shows that 38,000 more people found themselves out of work for the three-month period leading up to May, taking the country's total figure to 1.64 million.
And now a new report from investment bank Merrill Lynch has identified it as the "single most important determinant" of waning consumer confidence and dwindling mortgage transactions.
One section reads: "If, as we suspect, unemployment trends go higher, then we believe that this will put additional pressure on housing transaction volumes."
The situation has undoubtedly spread fear amongst buyers, who are also unable to enter the market as a result of growing personal finance difficulties created by the global liquidity crisis.
The problem also appears to be widespread throughout the country, as research from Chesterton estate agents revealed recently that prices were down in 11 of 12 regions in the UK during May.
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