Private Rental Housing Market in UK

Running head: PRIVATE RENTAL HOUSING MARKET IN UK
PRIVATE RENTAL HOUSING MARKET IN UK
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PRIVATE RENTAL HOUSING MARKET IN UK1
Table of Contents
Introduction................................................................................................................................2
Question 1..................................................................................................................................3
Question 2................................................................................................................................12
Conclusion................................................................................................................................16
References................................................................................................................................17

PRIVATE RENTAL HOUSING MARKET IN UK2
Introduction
“Residential rental property” is the houses that are bought by an stakeholder and
settled by renters on a rental or lease agreement. “Residential real estate” can be townhouses,
condominium units, homes with single family, duplexes, apartments and so on(Investopedia,
2020). “Residential rental property” is an striking investment. Not like futures, stocks and
other financial investments most of the individuals have direct involvement with both the
“rental market” as “tenants” and the “residential real estate” market as “homeowners”. The
housing stock in the United Kingdom adds property that are owned by individual and
engaged apartments and housing, authority that are local rented accommodation and privately
rented and property that are managed by coalition of housing. Tenacious scarecity of housing
is the major problem in the UK. It has been forcasted that the households number will
increase by 232000 a year til 2033 and present rate of building construction of home is
grappling to rise above 150000 to 200000 a year. Due to crisis, there is a accumulation of
approximately 5 million houses with not suitable housing. There is presently a accumulation
of requisite for housing of 4.75 million houses across “Great Britain” and about 3.66 million
houses are in requisite for housing and presently hidden and congested households,
particularly with serious physical health or affordability problems and people staying in
inappropriate housing. The prediction depicts that the number of household will increase by
4.3 million over the next two decades. In 2007, a target has been fixed by the government of
rising the housing supply to 240000 added houses per year until 2016. During this target
government took a pledge to bring as a minimum 70000 reasonable houses per year during
2010 to 2011 of which 45000 were to be socially fresh rented houses. Conversely, due to
credit crisis of 2008, this mark has strictly fall late as housing structure building has drooped.
“Demand-side approaches” have been engrossed to deal with costly house prices policies in
the UK that deals credit to groups of young home buyers.

PRIVATE RENTAL HOUSING MARKET IN UK3
Figure 1
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Question 1
Like any other assets, real estate is also dependent on “supply and demand” analysis.
The prices of houses be subjected to heavily on the “supply and demand” law. The law of
“supply and demand” give details about the affiliation between “supply and demand” for a
product and services and how the communication impacts the price of the “goods and
services”. When there is large demand for a good, its price increases. When there the
“supply” of a “goods and services” is large and “demand” is low then price decreases. The
law of “demand” explains that people will have little demand for a good which has a greater
price, when all other things remain same. People incline to loose something that originates at
a greater cost which limits “demand”. At the same way, lower prices increase demand which