The UK housing market

Business Economics and Management Science?By considering the ingredients that strickle the call for and hand over 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 variant elasticities of bargain for houses??November 20091.IntroductionThe postulate and Supply of properties in the market is the main creator 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 broad filter. I begin by examining which factors affect the drive 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 consume of HousesThere are many factors that affect the demand and supply of houses and apartments, al to the gameyest degree in greater and some in smaller extent. The most substa ntial 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 charge rates of loans, means more expensive borrowed notes. This causes a fly in demand of houses.

A decrease in the assemble rates would lead to high schooler demand of houses, as the investors would push up to pay a reduced interest to the bank (Levin et al., 2009). ?Consumer confidenceWhen the consu mers liveliness pessimistic about their fu! ture, 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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