Nobody downloaded yet

Problems in the Housing Market - Assignment Example

Comments (0) Cite this document
In the report, it is stated that according to Erdman (1992, p.3) ‘the UK property market is highly sophisticated and based on well-established traditions, customs and codes of practice, and it is widely recognized within the UK – as  elsewhere – that every major business decision has a property dimension.’…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
Problems in the Housing Market
Read TextPreview

Extract of sample "Problems in the Housing Market"

Download file to see previous pages In this essay, the problems faced by the housing market in the UK are examined and evaluated. These are discussed with the help of specific examples.
This essay is organized as follows. Section 2 discusses the theoretical views in this regard. Section 3 discusses the property market development mainly housing market development and macroeconomy in the UK in the early 1990s. Section 4 discusses the property market development especially housing market development and the macroeconomy in the UK since 2007 and section 5 concludes the report.
An ideal property cycle according to Ball et al (1998) can be characterized as business upturn and development, business downturn and overbuild, adjustment, slump, and the next cycle. Many economic theories have been put forward to explain these five patterns like the business cycle approach (Barras, 1994; Key et al, 1994), based on accelerator principle. The two major factors affecting property development cycles are exogenous occupier demand for space and pro-cyclical exogenous availability of finance according to this approach. However, this approach does not account for the construction completion lags. Further, there can be causalities from development cycles to economic activity also. Hence the building lag model developed by Baras(1983,1994) tries to produce an endogenous mechanism to explain development cycles. Here, the lag between demand and supply together with the accelerator principle explains the development cycles.
The dynamic model based on historical data for UK property development by Barras and Ferguson (1987a, 1987 b) establishes an endogenous development cycle mechanism. This model identifies the level of user activity and the level of investment activity as the two major economic factors affecting property cycles. This model, however, explicitly includes an endogenous cycle mechanism, which is problematic. Further, the homogeneity assumption for variables like rent, capitalization rates, building costs etc is also questionable.  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(Problems in the Housing Market Assignment Example | Topics and Well Written Essays - 3000 words - 1, n.d.)
Problems in the Housing Market Assignment Example | Topics and Well Written Essays - 3000 words - 1. Retrieved from
(Problems in the Housing Market Assignment Example | Topics and Well Written Essays - 3000 Words - 1)
Problems in the Housing Market Assignment Example | Topics and Well Written Essays - 3000 Words - 1.
“Problems in the Housing Market Assignment Example | Topics and Well Written Essays - 3000 Words - 1”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Problems in the Housing Market

Collapse of the Housing Market

...?Collapse of the Housing Market The collapse of the housing market affected the global market environment particularly the financial organizations. The U.S. sub prime fiasco was behind the collapse of the housing market. The topic is very much relevant as collapse of the U.S. housing market had repercussions leading to worldwide recessionary trends because of globalization. It all started when financial companies started depending too much on the innovation in the blind faith that it will yield returns. The symptoms of the malaise started emerging in the US mortgage business first. The...
2 Pages(500 words)Essay

The Housing Market Bubble Burst

...? The Year That the Housing Market Bubble Burst: And Could It Happen Again Why Did the Housing Market Bubble Burst In 2006 The real e price kepton rising for more than a decade until 2006. The reasons were many and varied. The phenomenon can better be understood from the demand supply perspective. Source: The cost of housing or for that matter for any commodity solely depends upon the demand-supply dynamics if it is allowed to operate in a free market without any government intervention. Housing demand was in upswing since January, 1993. The median housing price,...
3 Pages(750 words)Research Paper

Australia Housing Market

...? Australian Housing Market Insert Australian Housing Market Introduction Property ownership is a mater which usually is considered with a lot of seriousness in the society. The fact that it relives individuals and the families off the stress of paying mortgage besides securing their future is reason enough for individuals to strive for this goal. The ever increasing population and the desire for individuals to access decent housing has made the search, for properties more intense and even the current recession hasn’t stopped this. Australia like other nations has a more or less the same situation. Sydney, the capital city of Australia is considered to...
3 Pages(750 words)Admission/Application Essay

Housing Market in U.S borrowing more money, credit standards were lowered thus fueling growth in the so-called subprime mortgages. Additionally, new products were invented lowering upfront payments and making it easier for individuals to take bigger mortgages. The biggest problem that arose from these mortgages was that some had negative amortization (Baker, 2002). This is because payments made by some of the borrowers did not even meet the interest due thus making the debt grow more. By 2002, the housing prices had shoot to nearly 30 percent even after adjusting for inflation. Statistical analysis evidences an impact of housing prices to the housing market upon a...
6 Pages(1500 words)Essay

Housing Market in Australia

...the detailed analysis of the extent to which the dwelling availability has changed problems that arise which affects the lower income group or poor tenants. Section four assessed the policies formulated by government and the market processes combination. In the concluding section, some of the problems and issues were redesigned and it is discussed that commitment to equity is way more important that new policies (Paris). Berry (2010) has stated that private rental sectors have always proven to be one f the most important segment of Australia. Even though, after the Second World War, there has been decline in its relation to home ownership, yet private housing has never...
6 Pages(1500 words)Essay

Housing Market

...need to be determined. 7. All extensive data collection has to be taken from the specific local areas, which requires extra control of the variables on which the location choices are based. Therefore, the variables must be accurately chosen, to eliminate the variable biases, and to decrease the problems of multicollinearity. The further avoid difficulties in measurements, the proposal given in the articles divides Great Britain into smaller geographical areas, where the local amenities like the climate variables vary, but they are adjusted with the local housing market, because the labour market can not be modified (Englin, 1996). Gayer (2000) took an instrumental...
6 Pages(1500 words)Essay

Demographics and the Housing Market

...DEMOGRAPHICS AND THE HOUSING MARKET IN CANADA Down the ages, housing prices of a place have been the basis of concern for all individuals. The collapse of housing prices or a shortage of houses, all affect the psyche of the consumer. However, an interesting relationship exists between the demographics and house prices. This is because housing consumes a large part of the income of a typical household. Both prices and quantity of houses available in the market are determined by the construction sector and households. The availability of houses in the...
4 Pages(1000 words)Essay

Housing market in China early 1990s. The real estate industry has grown so much that ninety-four of the 500 richest people in China are in the real estate business as reported by the Guangdong-based "New Fortune" magazine. Those real estate tycoons on the rich list possess wealth worth136.39 billion Yuan (about 16.4 billion US dollars) which accounts for 23 percent of the total wealth owned by all 500 richest. China's housing prices have also soared particularly in where the country's average housing price rose by 14.4 percent in 2004. In the first quarter of 2005, housing prices rose by 12.5 percent year on year. In east China's Shanghai municipality where one can find the most expensive...
20 Pages(5000 words)Case Study

Mortgage and Housing Market Crises

...Mortgage and housing market crises: Introduction: An asset bubble is an economic problem occurring mostly in the housing market, we can define it as the persistent rise in prices of assets which cannot be attributed to any attributes the asset posses. When an asset bubble occurs it is usually anticipated that there will be a bubble burst, the price of houses depend on location, features and other economic factors, however the price may rise to a level that these factors are not responsible for the rise in price, when this occurs we refer to this as a house market bubble, the bubble burst is experienced when the price of such assets fall near to zero. The mortgage crises occurred after the United States housing market bubble burst... that the...
5 Pages(1250 words)Essay

The UK Housing Market

...Business Environment Section-A Answer Considering the UK Housing market, the impact of some of the decisions on house prices: (a) If the government introduces some kind of incentives for prospective buyers then it is bound to give a boost to the housing sector as such. Reports suggest that British housing market has slowed considerably since last summer, therefore if the government announces a scheme for the first time buyers allowing them borrow 50,000 of their mortgage at 1%, a very low rate of interest, this is bound to give the housing sector something to cheer about because this will encourage the individual buyers...
7 Pages(1750 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Problems in the Housing Market for FREE!

Contact Us