Analysis of UK Housing Market: Factors, Policies, and Trends Report

This report provides an in-depth analysis of the UK housing market, examining the key factors that determine private housing prices, including interest rates, income levels, demographics, and government policies. Task 1 utilizes supply and demand analysis to identify and explain the main factors influencing price fluctuations, supported by relevant graphs illustrating the impact of these factors. Task 2 identifies and explains the main government and economic policies used to stimulate demand for private housing, such as the Affordable Homes Programme, Green Belt Land Policy, and Stamp Duty policies. The report assesses how these policies aim to increase the supply and demand of housing within the UK, offering a comprehensive overview of the market dynamics and government interventions. The report also touches upon the issues like speculation, taxation and the legal environment. The report offers an excellent overview of the UK housing market to students.

Report on the UK Housing
market.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Housing plays an important role in the development and growth of economy in any of
specific country. The provision of housing has been identified as the key indicators of
development. Tin United kingdom, the demand for housing has been accessed the existing
supply which has turned the resultant as the poor planning and informal settlement with lack of
proper housing and infrastructure. In economics, supply and demand is the framework for
prediction of equilibrium with respect of price ans the quality of product. In the context of
housing there are many of factors that are effecting the decision-making in purchase or sell. The
report will have discussion regarding the factors for the determination of prices along with
government/ economic policy that is being used for stimulate the private house demand.
TASK 1
The private house prices in UK has been softening with start of year 2016 as it has been
differentiated in the term of regional area as the prices in London are been falling as on other
hand in Scotland, Wales and Northern Island. As per the data of year 2016 the sales of the
private houses has been decline by 12%. Housing has been identified as the heterogeneous
commodity which have the yielding different services of different group of people. Real estate
has been established as the tangible assets which heaving relaying on the supply and demand ass
the demand and supply is the framework which have the establishment of relationship in proper
understanding the level of equilibrium of the private house in market. The supply in the housing
in the UK is majorly being impacted with the change in the rates turning out be low and the lack
of the level of the suppliers. The law of supply and demand are termed as the basic principle of
economics which have the establishment of relationship among the supply of private houses as p-
per the respective pint of demand.
The supply and demand have the inverse relationship or can be said as they work against
each other. In the terms of the private housing, each transaction have the involvement of buyer
and seller. The buyer is the one who offer the property for sale, as it depends on seller for
acceptance or rejection. The equilibrium has the indication over the right price meeting the
demand and supply terms and conditions. This process tends to be in continuous process till the
price and demand comes to the same point which is termed as equilibrium. In contrast, the
economic approaches have the nature of housing demand is having the positive impact in the real
life phenomena. Housing process have the grater level of fluctuations with drastic changes in
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short period. There is huge level of factors which are effecting the prices within the particular set
of region. On the other side the demand for private houses in market plays an important role as
the identical houses in different cities have different prices. The number of factor than are having
the effect over the particular demand of housing such as -
Higher Level Of Income
The income level of the residents of the country play a significant role in development of
demand over a particular area. In the economy of united kingdom the resources have turned to
boom which have directly or indirectly increase the income of households among the citizens.
The increase automatically improved the quality of living high extends the demand of housings
essential part in standard of living, Income have increased the pace in mist income iniquities in
last 10 years.
Demographics
This has the inclusion of the population growth in strong in UK which is termed as
advance economy. There is high level of immigrants as compared to different countries. Due to
this there is sudden increase in demand of the houses in particular area as the rental payment is
equal to monthly instalment of their own houses, there are existence of many more factors which
are effecting the demand for the privates houses in areas of UK, but it cannot be neglected as the
population plays an important role in development.
Lower Interest Rates
The interest in economy determine the flow of cash helps in determining the status of
economy. The interest help in proper determining the purchasing power of buyer regarding the
offering of seller. The interest rate is the rate at which commercial banks lend loans to customer
for their private housing. The lower rate of interest tends to have increase in demand as the
monthly instalment turn out to be low. This will automatically make the supply grater as it also
turns to be cheap for construction companies to have new building houses. This makes the
investor more attracted towards the purchasing of property which makes the upward movement
in demand graph.
Credit Availability
In respect of decrease in the interest rate loans have turned to be more easily available.
On the basis on the longer run, this situation will be turning out as the welcome result of
financial deregulation. This help in development of market with high range of products
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availability and credibility to all the potential borrowers who can have the repayment of the loan.
In the new financial subdevelopment of market. There are increse4 level of the low interest
deposit account so the people of country is try to give the more and more investment in the
building as to have the development of the personal account.
Speculation
Real estate has been established as the tangible assets which heaving relaying on the
supply and demand ass the demand and supply is the framework which have the establishment of
relationship in proper understanding the level of equilibrium of the private house in market. It is
about having the concern with real estate business which will have the effect demand and supply.
There is increase in prediction of economist that the property value in the particular region of UK
will increase in upcoming future. The private houses are tuned to be valued as the speculative
assets for UK citizen. The population are interested in buying the private houses having the
attitude of investment in property terms. They have the consideration housing better way of
investment as compared to equities.
Taxation
The taxation system is having the influence over the speculative increase in demand of
private housing. The reduction in taxation makes the increase in the assets yielding capital gains
more comparative to any alternative assets. The major problem is recognized as the major
exemption in owner and capturer regarding the capital gains assets. The ownership of the certain
houses in the country is based on the assessment in terms of rental values which can be said as
the largely exorbitant.
Legal environment
The restriction and the over regulated environment which makes the market prevailing in
more uncertainty for investors. On the other hand the impeding regulation have the attraction of
global level capital in conducive market which trends to move the price upwards.
Market conditions.
The phenomenon has the cyclical order followed by the bust is having the resultants for
driving demand market sentiments. The time when the market expectation is at high level, the
supply will be more creatively increase due to capital flow. On the other hand the when
confidence is having expectancy in fall of returns the situation of bust condition will be created.
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TASK 2
Identify and explain the main government/ economic policies that can be used to stimulate the
demand for private housing in the UK.
The government of the united kingdom has been the transition of securing the 1 million
of the net addition to the stock of housing in the Housing White Paper. There were the delivery
of the proposed Housing White Paper along with Autumn budget to have the assurance of
planning system which supports the objectives of housing supply. This will help in the
improvement of productivity in the housing market which will have the embrace along with
efficient methods with the improvement of skill of construction. The government will try to have
providence in home building fund for short term including the SMSs and the purposely rented
housing. The government has to look after the various local authorities support which will have
the grant funding in cases of affordable houses and housing revenue in the area of high
affordably pressure. There are various policy that are been developed by the government and the
economic terms of the country to have the simulation of the demand of the private housing.
In these of the government will have the movement over both supply side and the demand side
measurement. The scheme which are being developed are -
Affordable homes programme
This has been establishes on the behalf of government on the united kingdom. There is
the requirement to have bidding over brand counting with successful bidders to have the delivery
agreement in England. Despite having the constraint in fiscal term, the government is trying to
have investment money in housing. The government is trying to have the additional finance
which is being raised to have the reinvestment in the development of new housing. The “national
housing federation” The changes have being occurred to the with the heavily favours of the
intervention market. The level of extra investment to have the support over building. The
government is trying to have the relaxation over the grant level of funding with the delivery the
home mix ans the low cost ownership which need the development in different circumstances at
different stages of life.
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Green Belt Land Policy Of Government
The swift progression of the economy along with the rapid expansion of the urban
population have the made the insufficiency in the urban space which turns out to be more
important for the development which have turned out to be resultant in the disorderly growth.
There are the various number of the issues which have been raised to traffic congression which
makes the less able green land. The green belt development of the which are having the limiting
to the urban growth patterns in several service boundaries. There are the elements such as urban
containment policy, namely, greenbelt, urban growth boundary (UGB) and urban service
boundaries (USBs). The green belts is the management tool of the ecological urban growth that
is having the significant difference from urban growth boundary (UGB) and urban service
boundaries (USBs). It is one of the urban contaminate policies which will help in having the
security ever the ultimately and disorderly growth of unbans cities along with development of the
social problems as due to control with strict security in the development of land. The
deregulation with greenbelt will be resultants in the region. The government has strictly
prohibited the any types of the development in the green belt area along with nay actions done by
any enterprises or an individual will be Turing out to be more publishable offence. This has been
analysed as the to have he accurate exploration over the policies in the development of land. The
government will try to have providence in home building fund for short term including the SMSs
and the purposely rented housing. The government has to look after the various local authorities
support which will have the grant funding in cases of affordable houses and housing revenue in
the area of high affordably pressure. There are various policy that are been developed by the
government and the economic terms of the country to have the simulation of the demand of the
private housing.
The Stamp duty policy
The stamp duty have being the levied on the level of transactions which involving around
the residential property along with the freehold and the leasehold properties the taxes were
forced by the taxes the rates with the vary from the one state with another state. The stamp duty
is more of the payable with the provision. The government has the power which have the
instrument which have the bills of exchange, cheque along with promissory notes. There is the
involvement to high level committees which can be used to have the addressing the issues with
the differential duties. It is had the suggestion rewarding the access states with the corporate
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bonds along with debentures. The country has help in the development of the private houses in
the so that there can be situation in the different aspect in the development of the housing policy
of the country.
Interest Rate Policy Of UK
Central banks have to look around the world having the sharp cut of the interest rates
with financial crisis. The related have been the historical importance which is turning out to low
in the most of the developed countries. There is the increased in the nature of the uncertainty
about the nature with the Brexit. The EU withdrawal which is wide range of the paths over the
upcoming years. The monetary policy have the response over the Brexit the bank has to create
new money in having the purchaes of the financial assets which is remained unchanged along
with active remaining. The interest in economy determine the flow of cash helps in determining
the status of economy. The interest help in proper determining the purchasing power of buyer
regarding the offering of seller. The interest rate is the rate at which commercial banks lend loans
to customer for their private housing. The lower rate of interest tends to have increase in demand
as the monthly instalment turn out to be low. This will automatically make the supply grater as it
also turns to be cheap for construction companies to have new building houses. This makes the
investor more attracted towards the purchasing of property which makes the upward movement
in demand graph.
CONCLUSION
From the above file it can be concluded that the government will try to have providence
in home building fund for short term including the SMSs and the purposely rented housing. The
government has to look after the various local authorities support which will have the grant
funding in cases of affordable houses and housing revenue in the area of high affordably
pressure. There are various policy that are been developed by the government and the economic
terms of the country to have the simulation of the demand of the private housing. There are the
varsity development of the policy such as Affordable homes, programme Green Belt Land Policy
Of Government The Stamp duty policy Interest Rate Policy Of UK which will make will
automatically make the supply grater as it also turns to be cheap for construction companies to
have new building houses. This makes the investor more attracted towards the purchasing of
property which makes the upward movement in demand graph.
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REFERENCES
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