The Economics Of The UK Housing Market Coursework (Coursework Sample)

THE ECONOMICS OF THE UK HOUSING MARKET
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Brief overview
For many years, the UK housing market has lagged behind among most European countries in the construction of new housing facilities to meet the demands of the ever increasing and ageing population (Mullins, Murie, & Leather 2006). The UK housing market can be predisposed by a range of diverse factors ranging from economics to management issues. In the long run, the prices of housing facilities in any viable economy tends to congregate to the aggregate costs incurred in the construction processes (Mullins, Murie, & Leather 2006). Correspondingly, the supply of housing in the UK are influenced by a number of supervisory and geographic factors that are crucial determinants of the outcomes derived from the UK housing market. For instance, when the supply of houses are low, the price of houses becomes highly volatile resulting to inflation in house prices. Notably, since the First World War, the United Kingdom for the first time currently facing unprecedented challenges in their housing sector (Mullins, Murie, & Leather 2006).
The country is facing a massive shortfall of homes with approximately 100, 000 to 150, 000 homes being built annually. However, this compared to the ever increasing demand of housing facilities from the surging population has worsened the condition (Mullins, Murie, & Leather 2006). The present housing delivery system in the UK has manifestly failed to deliver the required number of homes to meet the increased demand. The continued fall in the number of homes implies an increased inflationary pressures on the rental costs and in the process squeezing household incomes. This document tries to analyze the economic problems related to housing in the UK with particular emphasis on the scarcity, and the demand and supply of housing facilities. In avoiding further failures in the housing sector, the UK government is widening its reform agendas past the narrow targets and interventions and short term stunts (Niemietz 2012). However, due to the economic problem of scarcity, solving and fixing the problem of housing supply in the UK is never easy (Niemietz 2012).
Carrying out a complete overhaul in the housing sector involves combining the instantaneous short term measures used in boosting investment in the development of housing facilities with the long term structural transformations. This is to permanently raise the levels and processes of house building activities thereby solving the problem once and for all (Niemietz 2012). This document analyzes such policy interventions relevant and applicable in overcoming the problems facing the UK housing sector. The short term reforms discussed in ...