This website uses cookies to ensure you have the best experience. Learn more

Taking Examples From Either The Housing Market Or The Commercial Property Market, Outline And Discuss The Economic Factors Influencing Supply And Demand For Your Chosen Property Type

1004 words - 5 pages

The housing market in UK has been effected in many different ways, from immigration to shortages of homes I am looking to discuss these factors in depth.

The demand of houses depends on what the interest rates are, as this will decide whether the buyer will be able to get a mortgage at a cheaper rate. The lower the interest rate the more demand of houses and the more demand in houses the higher the price. The supply will depend on what the price of the house is. The higher price seller will get more people would want to sell it. This is short term as when more houses appear on the market it will lead to a reduction in price if there isn’t enough demand. A possibility to why the demand ...view middle of the document...

Renting is the alternative to buying but recent statistics have shown that renting has risen faster than incomes. In some cases the price of housing is now rising faster than renting but it still makes economic sense to buy rather than rent however buying is much more difficult.

There are several constraints on house building, the government has a reluctance to build new homes. House building is at its lowest level since the beginning of the Second World War, statistics show that on average of 135,000 homes are being built, less than 200,00 necessary to keep up with the demand. There are many factors which effect why homes aren’t being built, communities have a strong attachment to preserving “greenbelt land” and many areas are protected from housing development. Also the lack of social housing, development has been very low.

Another factor affecting the housing market is the price of homes. Newly weds are finding it harder to step onto the property ladder and are being forced to rent due to money issues and banks having to tighten their lending cap. It is becoming increasingly difficult for first time buyers to get on the property ladder. This is mainly due to the rise in house price to earnings ratio. In the past this problem was got around by banks being willing to offer 'generous' mortgages (e.g. interest only, self certification, 100% mortgages). For example, in the past, the Abbey National lent 5 times a borrowers salary. This increased generosity in lending helped to keep the market buoyant without addressing the underlying problem of overvalued house prices. The Credit crunch has now made this difficult. At the moment, the lack of mortgage finance is one of the most significant factor in falling demand for housing. The Council of Mortgage Lenders suggest that mortgage approvals have fallen to the lowest levels since 1991. Up to July 2007, mortgage...

Other Papers Like Taking Examples from Either the Housing Market or the Commercial Property Market, Outline and Discuss the Economic Factors Influencing Supply and Demand for Your Chosen Property Type

The Housing Market in Australia Essay

921 words - 4 pages lot of money and with limited supply for housing and increased demand for housing will lead to a climb in prices. Economists argued that the Australian market for housing has created a property bubble which means that people are buying a house because they see an opportunity of making money because the demand is so high, some people don’t need to sell their houses but realises that with limited supply and high demand they can make lots of money

Economy in the Housing Market Essay

967 words - 4 pages price of a pack of Marlboro NXT since there is more demand for that specific type of cigarette. The concept of microeconomics make it much easier to understand factors that affect the shifts in supply and demand in equilibrium price and quantity. These concepts give examples and explain how those factors have direct affect on both the equilibrium price and quantity. An example would be the fact that since a new comany moved in to Atlantis the

Tapping the Ethnic Housing Market

1955 words - 8 pages interested in the housing market. The options lenders and real estate agents can pursue to increase the potential for individuals to consider purchasing a home includes: • Reviewing available home-buying lending packages and services to ensure they are of interest to the African American ethnic group, • Hiring African American lenders and real estate agents (or partnering with an agency that does this already) will help to better relate

Factors That Will Be Affecting the Demand and Supply for Products

1998 words - 8 pages cause a movement along the demand curve while changes in the factors that influence supply cause a movement of the curve itself. A dynamic global economic environment with continued innovation leading to new and improved technologies entails ever changing demand and supply situations for a large number of goods and services on offer to consumers presently. This paper examines the changing demand and supply considerations for 10 such

Ccpp - Commercial Property

614 words - 3 pages 28% = R140 000 OR R360 000 NETT after tax R360 000 / R1 500 000 = 24% CONCLUSION • Initial investment return is outstripping lending rate. • Return on own equity at 12% is good. • Property is self servicing thus no real cash flow negative implications for the owner. • Who ever had made the offer is paying a premium at 7% which indicates that the property has better potential. • Although the return of investment is substantial if sold now after only 12 months the long term returns look better unless the capital return can be better invested elsewhere. IZELLE BOTHA RETURN ADDRESS: P O BOX 908010 MONTANA 0151

Factors Affecting Demand and Supply

1524 words - 7 pages Discuss the factors causing a shift in the demand and supply of a specific commodity. In economics, Demand refers to the quantity of a goods or services that consumers are willing and able to buy at a given price in a given time period. The law of demand stipulates that there is an inverse relationship between the price of a good and the quantity demanded, that is to say, if the price of, say, good X rises, it will decrease the quantity

Housing Market

638 words - 3 pages The Current Housing Market compared to TCO’s A & B Supply and demand is a basic economic principal in which a product's price is either positively or negatively affected by the availability of the product. Consequently, if there is a high demand for a product that is in low supply, the price of this product will escalate due to market conditions that will support a higher price. However, if there is low demand for a product that is in high

Housing Market

2304 words - 10 pages issue, at least from an economic perspective, is whether it is a good idea for government to distort the allocation of labor and capital,” the article goes on to elaborates the fact that policies that encourage over-investment and how these policies contributed to the market meltdown. Once demand for housing hits a wall, supply takes a direct hit. The housing market has seen many builders closing businesses do to profit losses and

Housing Market

522 words - 3 pages The financial crisis of 2006-2009 had a far reaching effect on everyone. From the poorest country to the richest, the widespread impact could be felt around the world. While a financial crisis can be caused by a variety of factors, the most recent crisis was preceded by an asset and credit boom that was the US housing market. The housing market bubble burst, and everything went downhill. The US mortgage market saw a huge upswing in the

Using Examples, Assess the Relative Importance of Human and Physical Factors in Influencing Levels of Biodiversity. (15)

909 words - 4 pages higher. For example, in untouched areas of the Amazon rainforest, nature thrives. Although physical factors play a bigger role in influencing biodiversity, because they are the factors that determine which species can survive in certain areas in the first place, human factors have an increasing influence on biodiversity due to interference, be it positive or negative. The economic growth of a country can affect the levels of biodiversity. When

Market Demand

1509 words - 7 pages Market Demand The demand for a good or service is defined as quantities of a good or service that people are ready to buy at various prices within some given time period, other factors besides price held constant. And law of demand is the inverse relationship between price and the quantity demanded. It means the higher the price, the lower quantity demanded and vice-versa. A change of demand can be affected by two factors. First, the changes

Related Essays

Housing Supply And Demand Essay

989 words - 4 pages Housing Supply and DemandThere are two factors needed for a market to exist. These factors are buyers and sellers. The buyers and sellers of the housing market have a voluntary exchange of a house and/or property where the outcome will produce a conclusion where the buyer and the seller are both better off as a result of their exchange. Does this one transaction affecting the buyer and the seller have an equal outcome for a third party, with

Supply, Demand, & Government In The Market

620 words - 3 pages Supply, Demand & Government in the Markets Randall Jaeck Argosy University The graph above shows the equilibrium price and quantity of computers in the marketplace. The equilibrium is where the price and demand meet. For the graph above it is 1750 units and a price of $125. If left alone a market would naturally settle into equilibrium. With the market equilibrium price it ensures that the sellers willing to sell at that price

Demand And Supply Of Housing Essay

4214 words - 17 pages price that the seller is willing to agree for their property with the prospective buyer b) The actual price that the buyer is willing and able to pay. Buyers place offers for a property that the seller can either accept or reject A Sellers’ Market When the market demand for properties in a particular area is high and when there is a shortage of good quality properties (i.e. supply is scarce) then the balance of power in the market shifts

Using Named Examples, Assess The Relative Importance Of Economic, Military And Cultural Factors In Influencing Superpower Status

689 words - 3 pages Using Named Examples, Assess the Relative Importance of Economic, Military and Cultural Factors in Influencing Superpower Status (15 Mark) A superpower is a state with a leading position with the ability to influence events on a worldwide scale. It refers to a nation with the means to project its power and influence anywhere in the world and to be a dominant global force. Superpowers are typically large countries in terms of population and