Factors Influencing Price of Private Rental Housing in UK

Economics for Business

Table of Contents
INTRODUCTION...........................................................................................................................3
Identifying main factors for determining price of the private rental housing in UK with use of
supply and the demand analysis..................................................................................................3
TASK 2..........................................................................................................................................11
Explaining and identifying major governmental and the economic policies which could be
utilised for influencing demand for the private rental housing within UK................................11
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
In the current times, high level of emphasis is placed on undertaking economic concepts
with the motive to identify or develop suitable relationship between society, public and private
administration. Households who reside in UK, in relation to private rented sector increased from
2.8 to 4.5 million (UK private rented sector: 2018, 2020). In this, the present report will provide
deeper insight about the factors that influences price of rental housing in UK referring demand &
supply analysis. Further, it will also develop understanding about governmental and economic
policies that have an impact on the demand for rental houses.
Identifying main factors for determining price of the private rental housing in UK with use of
supply and the demand analysis
Housing market highly relies on the supply and the demand analysis. High demand and
the low supplies causes increase in the prices whereas prices fall at the time when the demand is
low and the supply is large of the homes on market Lower rate of interest impacts the demand,
however, natural disasters; lack of available lots, changing lifestyles heavily affects the supplies.
Law of the demand and supply is stated as an economic principle which reflects a relationship
between demand and supply for the products & services. The theory regarding demand and
supply is seen as basic principle in an economics. Housing market is affected by state of an
economy, real income, changes in population size and interest rates. Along with these demand
related factors, prices of private rental housing would be identified by an available supply. In
consideration with periods of rising demand and a limited supply, it would be seen that prices of
house will rise in addition with increased rent and risk of the homelessness.
Increase in demand