Business Economics Analysis Report Assesment

Running head: BUSINESS ECONOMICS
BUSINESS ECONOMICS
Name of the Student
Name of the University
Authors note

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The affordability of the rental housing property is the central cause for the increase in the
demand. There is a sever housing crisis going on, despite of the fact that the costs of the housing
is falling low moderately, the consequences are of diminishing customers confidence as the field
of housing continues to consume barbarities the amount of income. In UK, there are many
working-class or labour-class, poor-class and even middle class households experience the
concept of housing as precarious, exploitative and unaffordable. The Housing has been
considered as an injustice site for such a long time that it is easily considerable that this situation
is going to be stagnant. Demands that are being relegated are becoming conventional
(Investopedia 2020). These emerges to be a range of consciousness that the housing is political,
along with this there are some obvious initial clue that the management of power might finally be
initiating to start in order to move away from property-owners, developers, investors and that
towards tenants, residents and activists (The Guardian Newspaper 2020). The truth is the country
UK has become a heaven for the paradise and hell for occupants. Easy eviction, generous tax,
housing fraud, uncapped rents, and the replacement of social housing along with housing benefit
all these have transformed the rental sector into a print money license, at the expenditure of both
taxpayers and tenants. Between the years 2002 and 2015, among these thirteen long years long
period average salary of people whose rent upsurges by two percent, and but their rents increase
by sixteen percent (Government statistics 2020).

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(The Economic Times, 2020)
Raising the standard of the rented properties and maximum protection of the tenants
subsided agencies wages and improvising tenant’s access to the long term friend and family
tenancies. Building in areas or places, which are high in demand are vital to fix or repair in order
to managing the housing crisis. The formation of the next government requires a reliable
commitment to housing, which means explaining where the houses will be build and keeping in
mind to observer the proper placement of the infrastructure, which defines a precise solution in
order to overcome the objections of the houses (The Guardian Newspaper 2020). It is evident
from the report of the ISC in which it is found that the country UK holds the most worst
productivity gaps out there which is among the EU countries excluding Poland and Romania.
Areas which has high productivity rate calculates the average earning produced from an hour, are
broadly proved as giving the higher earnings and health and educational outcomes for the native
local population (Economics online 2020). It is said by Haldane that he would be astonished only
in there was not any lower payment on the field of industrial strategy targets, also he added that
it is possible that levelling up might replace ‘Brexit’ as the phrase which is most commonly used
in Whitehall and that will be progress. 3 quarters of councils do not have any confidence which
the government of the local area made sustainable finance arrangements, while 3 percent of them

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were bucked up which the government act to stop the crisis of the council funding, despites
arousing the stresses on adult social care, homelessness services, child protection (FT Newspaper
2020). Additionally a model regarding the tenancy has been developed that will give tenants the
clear guide to rental contracts.
(The Economic Times, 2020)
(The Economic Times, 2020)
The government wants to address enormous amount of improvised private rented sector
and considers it to be the most effective manner in order to make rental housing more affordable,
which will increase the supply of homes and upsurge its demand. The National Housing
Federation presents the association of housing and states that in England a tenacious scarcity of

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housing is a fundamental delinquent in the housing market. The number of households that is
estimate to raise by 232000 every single year until 2033, yet the latest rate of the house
construction is struggled to upsurge more than 15000 to 200000 in a year (ONS 2020). As per
Crisis, there is a surfeit of near about five million households having inappropriate
accommodation. Great Britain has a backlog of housing requirement of around 4.75 million
households, among which England alone is dealing with 4 million of it. Near about 3.66 million
number of households are in need of housing and are recently concealed and congested
household, those who have severe health issues, serious affordability and persons staying in
unfitting accommodations. Over next two decades, the total number of households is foretold to
upsurge by 4.3 million. In the year 2007 the Government decided and set a mark of rising the
housing supply to 240000 traditional houses a year by 2016. In between this complete target has
serious commitment to provide at less as 70000 reasonable houses each year by the year 2010-
2011, out of which latest social rented homes. Besides this the credit crisis of the year 2008, as
the housing edifice has drooped this estimate has fallen severely (Osborne 2020). There are
various rental policies in order to deal with the cost effective pricing of the houses in UK, which
have concentrated on the demand side methods, for example, ‘Help to Rent’, that proposes credit
to clusters of young house buyers, however, rising the accessibility of the credit which does not
indicate this problem. The following rental housing policies are:
 Social housing reform: this system is reformed by Localism Act 2011, it provides
the landlords more flexibilities regarding the tenancies that they offer in the verge
of protecting prevailing tenant’s rights. It made it easier for the social tenants to
shift inside social sector by integrating a national home swap scheme. It allows

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the local authorities in order to finish the central duty of homelessness in the
private rented sector without needing the consent of the applicant’s.
 Providing affordable houses for rent: the Minister of housing created a written
ministerial statement on 14 July 2011, announcing results of the programme of
affordable homes from 2011 to 2015. Affordable rent provides enough flexibility
on use of assets and rents to the housing providers under the new model
(Economics for Business 2020).
 Social housing fraud: as per the current research by the Audit Commision
recommends about 100000 social houses in UK which are extremely occupied.
Several social landlords are increasing their rigidness regarding the fraud
happening and to stop the bluffs in their housing stock, which is encouraging the
progress and the government wants various situations where the fraud has
stopped.
 Decent homes: the belief of the government is that the social housing must fulfill
a minimum decency standard. The social housing must, have moderately standard
kitchens, boilers and bathrooms; it must be in a state of repair; must be free of
safety and health hazard; must be decently insulated.
 Anti-social housing: it is one of the most severe abuse that can happen to a tenant,
and the consequences can be severe damage to whole communities and misery for
neighbours. Those who works for stopping this issue get the support of the depart
for communities and local government (Economics for Business 2020).
The housing revenue account subsidy system has been ended in the year of 2012, April,
which means the existing council can keep rental income and make the use out of it to fund their

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housing stock. In Barking, it has been set up by the councils own developer, the statement, Be
First, aims to create fifty thousand new houses in the row over 20years. and that it is not
necessary to generate same level of gain as private home building, as there are huge challenges
and huge opportunities, the ambitious council here wants to do something different in order to
change the place (FT Newspaper 2020). To provide tenants the information they require to keep
their landlord in account, by making a decent connection between the rent that the landlord
collects along with the service they provide. The public housing, collectives aggressively
underfunded, the neoliberal eras ideological consensus has been the housing are meant to be
controlled privately, highly unequal and debt fuelled. It will need a heck of effort in order to
dismantle this specific concept and create or find an alternative universal idea that will lead to
good housing. However, the system of housing is not going to vanish from the agenda of politics.
It has become political and centralised to contemporary economies become inaccessible to most
of the households, making opportunities for ongoing activists. The crisis that belongs to housing
is most lurking under the surface of many political currents, from populism and socialism. The
concept that the house has social and ethical significance, thus must be available to all acts of
right. As per the Land for many report the explicit policies in order to stabilise the prices of the
houses and prevents the houses from being treated as financial possessions. The private rented
farms or sectors gives flexible kind of tenure along with meeting the wide range of housing
requirements (Jolly 2020).

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References:
Economic for Business. (2020). Republicans Economic Views and How They Work in the Real World.
Retrieved 21 March 2020, from https://www.thebalance.com/do-republican-economic-policies-work-
4129139
Economics online. (2020). The housing market. Retrieved 21 March 2020, from
https://www.economicsonline.co.uk/Competitive_markets/The_housing_market.html
FT Newspaper. (2020). Financial Times. Retrieved 21 March 2020, from https://www.ft.com/
Government statistics. (2020). Affordable housing supply in England: 2018 to 2019. Retrieved 21 March
2020, from https://www.gov.uk/government/statistics/affordable-housing-supply-in-england-2018-to-2019
Investopedia. (2020). How to Calculate the ROI on a Rental Property. Retrieved 21 March 2020, from
https://www.investopedia.com/articles/investing/062215/how-calculate-roi-rental-property.asp
Jolly, J. (2020). UK housing market at its weakest point in a decade, says Savills. Retrieved 21 March
2020, from https://www.theguardian.com/business/2019/aug/08/uk-housing-market-at-its-weakest-point-
in-a-decade-brexit-says-savills
ONS. (2020). Housing - Office for National Statistics. Retrieved 21 March 2020, from
https://www.ons.gov.uk/peoplepopulationandcommunity/housing
Osborne, H. (2020). UK house prices set to rise further as demand outstrips supply. Retrieved 21 March
2020, from https://www.theguardian.com/society/2015/dec/04/uk-house-prices-set-to-rise-further-as-
demand-outstrips-supply
The Guardian Newspaper. (2020). Housing | Society | The Guardian. Retrieved 21 March 2020, from
https://www.theguardian.com/society/housing
The Guardian Newspaper. (2020). NewsNow: UK Housing news | Breaking News & Search 24/7.
Retrieved 21 March 2020, from https://www.newsnow.co.uk/h/UK/Housing

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