Self-employment boom linked to house price rises

Recent years have seen a huge increase in the number of self-employed workers in the UK, according to the Office for National Statistics (ONS).

The number of self-employed rose by 108,000 over the year to June, bringing the total to 3.6 million, out of an overall UK workforce of 28 million.

Banking, finance and insurance are the main industries supplying self-employed workers. Large numbers of the City workers that have been make redundant have decided to set up businesses of their own, tather than seek employment with another firm.

Although there have been various tax changes designed to help small businesses over the last few years, it seems that the principle reason for the surge in self-employment is the rise in house prices.

The ONS noted that high house prices encourage people to use the additional capital to support their business enterprises.

This theory is given credence by the fact that the last time self-emplyment enjoyed such growth was between 1987 and 1989 - during the last great house price boom.

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