The UK housing market

Business Economics and Management Science?By considering the work outs that have-to doe with the call for and bestow of houses and apartments explain what has led to the changes in the prices of houses and apartments in the UK everyplace the last three years. What would affect the sizes of unlike elasticities of abbreviate for houses??November 20091.IntroductionThe postulate and Supply of properties in the market is the main ground for the mutant of the properties? prices. During the last three years many different factors pretend led the house prices in the UK to a long filter. I begin by examining which factors affect the train and supply of houses, how they influenced the UK market, and finally, I will examine what affects the elasticities of demand for houses. 2.Factors determining the necessitate of HousesThere are many factors that affect the demand and supply of houses and apartments, about in greater and some in smaller extent. The or so substantial factors are:?IncomeIncome is a very important factor that affects the demand for houses. A growth in income would increase the demand of houses, patch a decrease would lower the demand. (Davies and Lam, 2001)?Interest RatesPeople usually grease ones palms houses with bills that they borrow from banks. An increase in the real upraise rates of loans, means more expensive borrowed capital. This causes a slough in demand of houses.

A decrease in the lead rates would lead to game schooler demand of houses, as the investors would switch to pay a reduced interest to the bank (Levin et al., 2009). ?Consumer confidenceWh en the consumers heart pessimistic about t! heir future, they usually stop spending money and consequently, demand for goods reduces. Consumer confidence is also related to unemployment, because in periods of high unemployment and uncertainty, people have low confidence and spend less. As a result, demand and house prices... If you want to get a full essay, order it on our website: BestEssayCheap.com

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