Real Estate Dynamics: Analyzing Trends in England and Wales Market

This report analyzes the real estate market in England and Wales between 1999 and 2017, focusing on price trends and regional performance. The analysis reveals significant growth in property prices, particularly between 1999 and 2005, followed by more moderate growth in subsequent periods. England exhibited a higher growth rate than Wales, with London experiencing the most substantial increase in property values. The report also discusses the impact of government decisions and policies, such as fiscal policy and taxation, on the economy and cash flow, highlighting the interconnectedness of government, households, and corporations in the circular flow of money. The findings emphasize the importance of considering macroeconomic conditions and policy changes when analyzing real estate trends and making financial decisions.

Running head: BUSINESS MANAGEMENT
Business Management
Name of the Student:
Name of the University:
Author’s Note:

1BUSINESS MANAGEMENT
Table of Contents
Part A...............................................................................................................................................2
Part B...............................................................................................................................................3
References........................................................................................................................................5

2BUSINESS MANAGEMENT
Part A
The real estate prices prevailing in the England and Wales and the respective changes in
the price movement in the trend period was taken into consideration. The trend period in which
the England and Wales real estates was analysed was the trend period of 1999-2017. The
analysis and the trend was analysed for the purpose of recognizing the growth shown by the real
estate market and the performance of the various regions of England and Wales. The data was
analysed by observing the percentage change in each of the period and taking the same into
consideration (Braakmann 2016).
Various factors affect the real estate price in Real Estate Industry. The Real estate
property market is directly linked with the performance of the company and changes in the
economy is well linked to the performance of the real estate industry. While analysing the given
data it is key to note that the trend period of 1999-2005 saw a major changes in the property
market where the change in the prices of the real estate property was observed to be more than
100% for all the regions and area of England and Wales. On the other hand, side it is key to note
that from the data analysed the year period 2005-2011 and 2011-2017 was taken into
consideration for the purpose of analysis. The real estate prices in the England and Wales on an
overall basis has shown a growth trend where the prices of the rise in the real estate has been
based particularly based due to the rising economic development and growth of the properties
(Banfield 2014). While analysing the data of the real estate data it was noted that the data from
the year 2005-2017 was taken into consideration where the growth rate of real estate industries
was seen to be consistent. However, on the other hand side the period of 2005-2011 was the
period where the real estate property has shown a slow growth rate.

3BUSINESS MANAGEMENT
England has a much higher growth rate in the trend period than the Wales thereby
reflecting that the factors and real estate environment has been consistent in England. Overall,
both England and Wales has shown a growth trend however, London was having the highest
amount of growth rate amongst all the other regions and parts of England and Wales. Thus, on
the other hand side it is also important to analyse factors and environment for the purpose of
analysing the trend movement (Hines 2017).
Part B
 Decisions and Policies of the government affects the workings and operations of the
overall economy. The fiscal policy defines the actions and the various course of actions
that the government plans to execute for the purpose of its operations. Different actions
and reforms taken by the government directly affects the level of cash flow in the
economy. One such policy and factors that could be the key reason for identifying the
cash flows movement would be the capital expenditure, taxation policies and various
other reforms that would affect the cash flow. The increase in the taxation policy and
the level of increasing or decreasing subsidy of various households would directly
affect the low income and high-income households groups. If the capital expenditure
is increased in the form of higher subsidies then the cash flow on an overall basis
would be increased which would influence the level of cash flows (Deleplace and Nell
2016). It is important for analysing various environment factors and opportunities that
should be taken into consideration for the purpose of the analysis. Financial planning
and decision of an individual investor can get affected from the same due to the change
in the macro-economic conditions and various policies. The circular flow of money is

4BUSINESS MANAGEMENT
interlinked in the environment with three of the key components like government,
households and corporates (Gilibert 2016).
 The flow of money is interconnected as seen in the Figure 1 where flow of money from
one side effects or influences other. Reduction in taxation rate and increase of the cash
flow will lead to increase in the household savings by the low income household group
and more expenditure by the high income household group. The corporates would also
get the benefit of higher cash flows in the form of higher cash flows that they would be
receiving from the high income household group. The circular flow of money thus is
influenced by various factors and conditions and the same needs to be taken into
account for the purpose of the analysis (Keen 2014).

5BUSINESS MANAGEMENT

6BUSINESS MANAGEMENT
References
Banfield, A., 2014. Stapleton's real estate management practice. Estates Gazette.
Braakmann*, N., 2016. Immigration and the property market: Evidence from England and
Wales. Real Estate Economics.
Deleplace, G. and Nell, E.J. eds., 2016. Money in Motion: the post-Keynesian and circulation
approaches. Springer.
Gilibert, G., 2016. Circular flow. The New Palgrave Dictionary of Economics, pp.1-4.
Hines, M.A., 2017. International real estate investment. In The Most Important Concepts in
Finance. Edward Elgar Publishing.
Keen, S., 2014. Endogenous money and effective demand. Review of Keynesian
Economics, 2(3), pp.271-291.