Housing Market Of The Uk Housing Markets

A housing policy can be thought of as the efforts put in by a given government to transform a housing market(s) for the purposes of achieving social objectives. In most cases, a housing policy is meant to ensure that the general population has access to a home that is affordable. For instance, the British Conservative/Liberal Democratic coalition’s housing policy is aimed at increasing the number of affordable housing units; fostering homeownership; making social housing flexible; tackling homelessness (especially for the

For most tenants they have been replaced by Housing Benefit. The sale of Dundee’s council housing to tenants and mass transfers of stock to Registered Social Landlords, have reduced the numbers to approx 14,000 current stock. As the role of council housing has diminished, Housing Associations have been encouraged to take over the limited opportunities for development.

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.

effect, because they know that it is likely that landlords will not be able to

In the 1980s, investments banks such as Goldman Sachs, Merrill Lynch, Bear Stearns, JP Morgan, and Morgan Stanley started selling mortgage bonds. Mortgage bonds were a collection of thousands of home mortgages, purchased from lenders, and their associated income streams (monthly payment). To address the fact that some homeowners often refinance their debt when interest rates are low which prematurely pays off the debt, mortgage bonds were stacked into layers called ‘tranches’. The lowest tranche represented mortgages to be paid off early, and the highest layer was the last mortgages to be paid off.

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)

Someone renting in an upscale section of Manhattan might pay only $1,000 a month for a three bedroom rent regulated apartment, yet the same apartment could garner upwards of $12,000 per month in the free market (Mceachern, 2014). Since tenants in rent controlled apartments are allowed to stay in their unit until they die and are permitted to leave their apartment to their heirs, the incentive for renters to remain indefinitely in a rent controlled apartment is very high. Renters financially benefit by keeping a rent controlled apartment, even in situations where the apartment may no longer meet their needs. On the other hand, the landlord is certainly the loser in the rent-controlled situation and has an equally high financial incentive to try to get renters out of rent-controlled apartments. Landlords and building owners are not the only ones that fail to benefit in a rent control scenario. Other renters that are lower income and unable to secure a rent controlled apartment because the current renters of a rent controlled apartment hold onto them long term (even when the have the income to afford the free market) also lose out in a rent control situation. The actual renters of the rent controlled apartments, while they benefit financially, sometimes lose out as well because the landlord does not keep up the quality of the apartment. As

Before the 1970s the banking was not a business that you went into to make money. That was until Louis Ranieri came around. Louis Ranieri had one idea that changed the housing market forever. His plan was to have a mortgage back security. A mortgage back security is an assist based security backed by a mortgage. For example, if you use your mortgage to start a business, your business is backed by that mortgage. The average mortgage loan has a fixed rate loan and takes thirty years to pay off, but then he thought to bundle them all together. They thought these would still be less risky because who would not pay their mortgage. They were doing hundreds of million dollars in mortgage bonds a year, but that all changed when they ran out of mortgages to put into the bonds. If there were no bonds then there was nothing left to make money, and the banking world was going to back to the way it was. Rather than letting that happen, the banks made a loan called a subprime loan.

Multiple reasons exist for the the lack of affordable housing. On the demand side these include population growth and increased migration to urban areas, easily accessible housing finance, tax incentives and a “strong cultural preference for owner-occupied detached houses”. On the supply side, affordability problems are exacerbated by inflexible and slow responses to the need for new housing stock, lack of infrastructure and generally inefficient planning processes and development assessment by local governments.

According to Bloomberg, the vacancy rates in New York City were at 2.87%, up from 2.31% reported last year. While you may not think that is that big of a deal, that 2.87% is the highest the vacancy rate has been in the city since August of 2006. This increase indicates that tenants have reached the limit on what they can pay. Not hard to see that when you take into consideration that in November, the monthly rent for an apartment had climbed nearly 4% from the previous year. The cost of leasing is even higher, it jumped up 18%. On the other hand,

A place to call home, a concept that much of society aspires to. A home is a sanctuary, a place to raise a family; home after all, is where the heart belongs. However, does the notion that a house is make a house any less of a home than a house that is owner occupied? Housing policy during the latter part of the 20th century began to shift towards owner occupation. One policy in particular completely changed the face of housing, it brought about the biggest shake up in housing history. The Conservative Government’s ‘Right to Buy’ scheme or ‘Council House Privatisation’ as written in (Baldock, Mitton, Manning & Vickerstaff, 2012), formed part of the Housing Act 1980, the then secretary of state for the environment, Michael Heseltine, stated "This bill lays the foundations for one of the most important social revolutions of this century” (Jones, 2011). Therefore, this essay will answer the question can the “Right to Buy” policy as introduced

Those who rent from private landlords do not only tend to, on average, pay almost double the rent of a person living within social housing but also are twice as likely to live in a residence the Government would class as a “non-decent home”, a residence in disrepair and one that does not meet health and safety standards (Jonathan Owen, 2014). The undisputable growth of private renting sector is not limited to England but is also noticeable in Wales, Scotland and Northern Ireland. In wales the private rental sector represents 14% of total housing, the private rental sector in Scotland has doubled over the last ten years as more than three hundred thousand properties have been sold and in Northern Ireland private landlords own more properties than councils and housing associations combined according to national figures provided in 214 (Jonathan Owen, 2014).

This can be due to a number of reasons such as a rising demand for homes in the private sector. Social housing is available for anyone who wishes to start a tenancy in that sector, however in most parts of the country there are insufficient houses in the SRS for everyone who might want one. Therefore, social housing providers will identify and issue criteria that will determine which household can gain access to social housing (Chartered Housing Institute, 2010). Using the allocation process, social housing in England have a role in providing accommodation for the most vulnerable in society e.g. homeless people, single parents people with low income etc. (Chartered Housing Institute, 2010). This allocation process can however be seen as strict, and many people who don’t fall in to this category cannot access social housing, and thus the PRS in increasing being used by local authorities and agencies to house homeless

From an objective point of view, consumers see rent controls in large booming cities as a good thing, they are a protective measure initiated by the local government to ensure price stability for tenants currently in apartment buildings. However, upon further investigation rent controls can interfere within the free market and create unintended consequence that end up hurting the consumer. The Economist article describes how there are two varieties of rent control: Rent Control (placing a cap on the amount that can be charged) and rent stabilization (how much rent can be raised over a period of time). In either case they are meant to take the power away from the Landlord and give it to the tenant. I will explain how rent control is not a solution in the short run and presents a larger problem in the long run. I agree with The Economist article, however I will add on aspects of producers cost and economic welfare.

Housing is categorized under basic commodities. Despite the necessity associated with proper housing, families and individuals all over the world continue to have trouble in affording proper housing facilities. Affordable housing refers to a kind of accommodation that is suitable for the needs of a range of very low to medium income families. Affordable housing should be priced so that these households can be in a position to cater for their other basic living costs such as food, medical care, clothing, education and transport. Housing is a combined product of land and buildings. Accommodation bargain-basement relays to an individuals ' capability to pay for their housing at a given point in time. It is a multifarious issue brought about by labor markets and local housing as well as larger macro-economic, environmental and social forces. As citizens in Australia continue to experience shortage of affordable housing, economics continue to debate on the necessity of government intervention in the issue.