Factors Influencing Price of Rental Housing in UK

Economics for Business

Contents
INTRODUCTION...........................................................................................................................................4
TASK 1..........................................................................................................................................................4
Factors which influence the price of private rental housing in UK..........................................................4
TASK 2..........................................................................................................................................................9
Governmental or economic policies used to influence demand for private rental housing in UK...........9
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................13

INTRODUCTION
By analyzing the numerous aspects which affect supply and demand of a specific
commodity in a particular space, economic concepts can be properly used. This covers a range of
topics whereby notions like financial emergencies, changes in production cost and more readily
be corrected systematically. The current report covers significant point that affects cost of leasing
home in UK. To encourage this notion, law of demand and supply curves are utilized, that really
help in researching main determinants, for example political policies utilized for sparking cost of
rental home. This report looks at the phases of dwelling prices of UK in an economical outlook,
for example fundamental procedures that induce industry to provide or take domiciles on rent on
reasonable rates.
TASK 1
Factors which influence the price of private rental housing in UK
Through economic perspectives, costs of houses in balance are generally put by balance of
demand and supply. But if, supply fails to reacting involving high prices of domiciles, or when
prices induce by facets that are very different from fundamental needs such as home, then under
such terms, prices of houses will be potentially increase and prices for buyers. This will up
pressure on wages and cost of conducting business, in addition to increase risks on equilibrium
of macro economics. For that reason, people under such situations, in the place of buy house
attempt to defend myself against rents, so as to satisfy their basic requirements of shelter.
Affordability of home in economical terms and conditions, defines as relationship between skill
of buyers to cover and market-determined expenses of home. Alongside this, such theory not
normally correlate with ‘affordable homes', i.e. social rented and intermediate casing, which can
be given to eligible households, demands of whom' aren't met via certain sector. Additional at
state of balance, prices of stated positioned will probably soon be beyond the price range, leaving
a few that aren't able to pay for where they cannot get possession of dwelling. In societal terms,
insufficient significance additionally has significant impacts on cost by shoving the rents up.
What's more, unaffordability to purchase house additionally results in increase requirement of
rental home, where, as a law of demand and supply, it raises cost of the same too. In this aspect,
UK that will be among those overcrowded state of European, home challenge is thought of as
enormous and consequently, should take decent care, for fulfilling demand of visitors to satisfy