Factors Affecting UK Housing Market

This proposed study examines the development of housing policy and right to buy from the view of government mentality of UK. This study focused on the difficulties not only to the purchaser of council house but also to those tenants who have not purchase tenancies in UK. This proposed study also discusses the role of social housing in 21st century housing policy. Aim of this study is to provide a framework to the researcher and to identify different impacts of Right to buy scheme on housing market. Among other issues, this study also discusses that council housing gives better opportunities and provide security to the tenants with 33% to 55% discount as compared to market price.

This is a result of a demand shift to the left related to a lack of available tenants for the apartments. The property management company has to decrease rental rates allowing the quantity supplied to decrease as well (University of Phoenix, 2012), creating a downward swing in the supply curve. The price of rentals decreased to create less quantity that is available for rent creating equilibrium and a decrease in surplus. This is a difficult decision to lower price significantly but will continue to create revenue for the property management company while decreasing supply of vacancy.

The question selected for this research paper has been a thought of many property professionals, particularly over the past few years as more and more foreigners enter the Australian property market. This research paper will broadly help the greater community and directly influence the typical Australian property investor who will benefit through further understanding the positive and negative impacts of foreign investment, further more:

The United States will always recall autumn of 2008 as a time of financial terror, and rightly so. After the stock market crash, millions of Americans, previously unaware of the brewing crisis, lost their businesses, their jobs, and their homes. Even now, we still are in a period of recovery from the economic turmoil of that year.

Housing affordability is the relationship between household income and burden of housing costs and is an issue when it prevents population groups from accessing appropriate or secure housing. (3, 4) Australia has seen a severe escalation in rent and house prices that have not been matched by growth of household income. This decline in housing affordability is a result of economic growth, tax incentives for owners and investors, more accessible finance and population growths, which consequently result in an increased demand for housing. (3, 5) Moreover, this is further compounded by land and development limitations that restrict increases in housing

Macroeconomics is an excellent tool for the analysis of the housing industry as something like a capital good, as a home is considered to be, cannot easily be studied in a short-term platform. Real estate is a good that costs several times more than an average persons annual income, in the United States that number is typically 7 times as much, and in the United Kingdom that number is 14 times as much. Several factors of both supply and demand directly impact the housing market on a macroeconomic scale. (Business Economics, 1)

After World War I, the demand for rental housing in New York City threatened to drive rents higher. In order to keep rents from rising to their equilibrium levels, city officials imposed rent ceilings. Over time, the implementation of rent ceilings caused a market shortage to occur because the demand for rent controlled units exceeded the supply. According to the law of supply and demand when the price decreases below the equilibrium point there is a move to the right on the demand curve. Conversely, the decrease in price causes a move to the left on the supply curve. Customers demand more of an item, in this case, housing, when the price is lower; however, the suppliers are willing to supply less at the new lower price. This shift in New

In recent years, what can only be described as extremely rapid growth has occurred in the London property market. With a present average house price of £458,283 compared to £179,492 for the rest of England and Wales (Land Registry, 2015, pp. 3-5), London is an interesting case study for analysis due to a consistent 9.8% ten year growth average (Knight Frank , 2014). Something demonstrated in Figure 1, which shows property price percentage increase from the twelve months prior to December 2014. With such levels of growth, it is easy to conceptualise London’s attractiveness to investors, particularly that of foreign origin from less stable countries.

Owner-occupancy in the US peaked at 69.4% in 2004 Q2 and it has subsequently declined to 63.1% in 2016 Q2. There has, therefore, been a significant rise in the size of the US rental market during this period to offset the decline in owner-occupancy. Credit availability collapsed in the aftermath of the financial crisis, thereby forcing many would-be first-time buyers into the rental market or going back to living with their parents. The shift in housing-stock demand towards the rental sector has also had consequences: rent inflation has been rising. The latest 12-month change in rental costs, according to the latest consumer price index report, is +3.8%. Numerous observers, including myself, believe this official

The change in expectations of management caused the supply of two-bedroom apartments to decrease. The expectation was that more individuals would prefer to live in a condo vice the two-bedroom apartment. It also eventually occurred and as a result, this factor caused the supply curve to shift to the

The purpose of this literature review is to explore the issues associated with the private rented sector (PRS), because as noted earlier, this is now becoming a very important tenure in the overall UK housing market. Approximately, 4.9 million households in the UK are in the PRS, which has more than doubled since 2001 (Paragon 2015).

Housing demand includes household growth, real incomes, real wealth, tax concessions to both owner-occupied and rental housing, concessions to first homebuyers, returns on alternative investments, cost and availability of finance for housing and the institutional structure affecting housing finance provision (Yates, 2008). The growth in the number of households and in real income results in the increased pressure on housing demand.

I shall look into details how policies in the public and private housing market and the immigration policies affects the private market, despite property prices steadily increasing, the private property market in Singapore continues to boom. There are many factors that play a role in this drastic demand for private property

In this report, the question “How much of the changes in the median selling price of homes in a city can be explained by the changes in median income of that city?” is answered. Home ownership is an important aspect of one’s life stages, and home prices are determined by demand and supply. The demand curve is affected by the one’s income, such that as one’s income increases, one is more willing to pay a higher price for the same quantity of goods (Baye & Prince, 2014). However, there are many other factors that might affect the demand curve, e.g. no. of children, in the household, the perceived quality of education in the school district, or the number of job positions (filled or open) around the city. According to Burda

A difficult characteristic to understand about the housing market is how a price is given for a particular house. That price will be designated to that particular house alone. All houses have various pricing, so I can’t always assume that one will cost more or less than any other. The pricing for houses vary based on their characteristics. Each characteristic must be analyzed to determine its contribution or detraction toward the price. I have taken some of these characteristics and modeled the relationship between them and the price of real estate for a specific area.