Transformation Of Funding For London Residential Developments After 2008 Crysis
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TRANSFORMATION OF FUNDING IN LONDON RESIDENTIAL DEVELOPMENTS AFTER 2008 CRYSIS
This research examines and analyses the foreign investment in London on the domestic sector of construction residential market, explaining and examining why London city has become an interest city to invest and how the 2008 financial crisis has changed the way to fund the residential in particular, but the construction in general & how this money has impacted in the market both ways, prices and JVC partnership on the funding side. I. METHODOLOGY
For this research a statistical observation was used. Official statistical data and databases were carefully processed and analysed. A comprehensive and depth analysis of statistical data of…show more content… Growth was overwhelmingly driven by London, where the value of new private sector housing orders more than tripled between Q1 2013 and Q2 2013 (ONS, 2013).
This growth has not gone unnoticed by investors in times of economic instability, found in the UK market or in particular London, a desirable and safe place to deposit their investments.
To explain this phenomenon
At the end of 2007 main European and American banks declared massive losses
The collapse of the financial system was the prelude to a long period of recession, where some that many European countries are still trying to recover with some
This crisis could be explained as an immediate cause of the sub-prime mortgage lending system adopted by banks. These mortgages were sold speculative practices. Incentives to offer credit products, along with low interest rates caused lenders became less cautious in their practices.
The exposure to those toxics assets and packages As a result of these sales practices between banks intersecting, when the fraud was discovered financial institutions all around the world they stopped lending to each other and also lending to costumers, institutions and companies. The reduction of liquidity into the market caused severe impact into the construction industry in the UK.
While the American and the European economies remained broke and the strength of the banking sector in minimum the Middle East, with an