Tata closure could hit house prices

Tata closure could hit house prices



The closure of Tata’s Port Talbot steelworks could cause surrounding house prices to plummet, research suggests.


Figures released by property portal eMoov revealed a Tata closure could cause Port Talbot property values to fall by 10% over the next 12 months.

Russell Quirk, Founder and CEO of eMoov said: “The importance of the decision at hand impacts far more than property prices in Port Talbot, however, the first signs of economic decline are often an increase in unemployment rates and the resulting drop in property values.

“When the local economy of an area relies so heavily on one specific industry to survive, the consequences of said industry disappearing all together can be catastrophic to the community.”

eMoov said Tata’s purchase of the plant in 2007 caused house prices to rise by more than £10,000, however at £103,000, Port Talbot’s average value is still lower than the UK average.

Prices have already fallen by £3,000 due to the town’s economic uncertainty.

11% of Port Talbot’s 37,000 citizens work at the Tata steelworks, which is the highest proportion of reliance in the UK.

It has been estimated that £2.5 billion of investment would be needed to make the Port Talbot steelworks profitable.

On 21st April, the government announced that a package support worth hundreds of millions of pounds would be made available to any potential buyers of Tata Steel. 



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