Factors In Determining The Price Of Rental Housing In The UK

Factors In Determining The
Price Of Rental Housing In
The UK

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Supply and demand analysis and recognise main factors to determine the price of private
rental housing in UK...................................................................................................................1
TASK 2............................................................................................................................................7
Main Governmental policies that could be used to influence the demand for private rental
housing in the UK.......................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In present time market rents are mainly based on two factors such as local wages levels
and the balance of supply and demand. As per the study of rental housing in UK is average
which is easily get by students. For this utilise different resources which are surrounding on
people that called as economic (Harbarth and et. al, 2015). There are identified 4 factors that
impact on the economy in direct manner such as, labour, capital, land and business organisation.
To better understand these factors require to apply specific concept of micro environment that
help in supply of company to reduce any type of differences that occur at the time business
activities is known as economic of business. This report based on the different variables that
analysis the price of private rental housing in context of United Kingdom. Along with explain all
government policies that impact on the demand for private rental housing in the UK.
Additionally, present all facts, graphs and points in regard of rental housing.
TASK 1
Supply and demand analysis and recognise main factors to determine the price of private rental
housing in UK
Real estate business is defined as tangible assets in which consist of property,
construction as well as land. These assets are used for set up business and mainly focus on the
land and buildings which is available in both manner like rent as well as sales. The house
properties are categorised into different manner like housing, industries and commercial. In
present time mostly people prefer to take house on ret which is suitable and adjust in their
budget. The business of real estate is impacted on the law of supply and demand, where price of
housing are mainly based on the these factors. The demand of housing and low supply become
reason of hike in prices and fall down when demand is fulfil on time at market place. The law of
demand and supply define as basic terms of economics. Both terms of demand and supply based
on the products and services which is related with them in positive and negative manner. Such
as, when demand of particular product is enhanced so price rates also increased. While, supply of
any product is increased so price will fall.
The real estate business conduct activities in house transaction in which consist of
participation of buyers and seller. On the other side, law of demand and supply presents the
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changes in price as well as equilibrium. Therefore, due to less supply of house increase price of
house and same things tends to happen with command wars (Storey, 2016).
Demand law: It is linked with the goods & services in which willing to purchase house
in particular period of time. According to this law price and actual goods weight are always
inverse association with each other. In the context of private housing of UK the prices gets to
raise in order to demand of land get deducted vice versa.
Supply law: It is based on the economic theory in which predict production in which
states the supply of good mainly modify as per the changes in price and goods. This law defines
that supply and price both have positive relation it means when price increase so supply
automatic increase.
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