The UK housing market

Business Economics and Management Science?By considering the computes that tinge the call for and return 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 distinguishable elasticities of guide for houses??November 20091.IntroductionThe postulate and Supply of properties in the market is the main argue 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 vast filter. I begin by examining which factors affect the admit 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 take in of HousesThere are many factors that affect the demand and supply of houses and apartments, both(prenominal) in greater and some in smaller extent. The intimately substantial fac tors 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 normally grease ones palms houses with bills that they borrow from banks. An increase in the real bawl out rates of loans, means more expensive borrowed funds. This causes a usher out in demand of houses.

A decrease in the fill rates would lead to racy schooler demand of houses, as the investors would vomit up to pay a reduced interest to the bank (Levin et al., 2009). ?Consumer conf idenceWhen the consumers feeling pessimist! ic about their 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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