Situation in the UK Housing Market Today (Essay Sample)

HOW SERIOUS IS THE MARKETING SITUATION FOR THE UK HOUSING MARKET TODAY
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1 Introduction
England's greatest property organizations have censured another government strategy permitting them to stay away from possibly a huge number of pounds in moderate housing commitments on the grounds that they fear it risks destroying the social mix of London. This paper therefore aims at establishing how dire the situation is in the UK housing market.
2 Overview
In the recent past, UK’s minister directed that developers of empty structures be exempted from contributing to the provision of affordable housing, in a policy referred to as the vacant building credit policy. The unintended outcomes of this policy will really prompt a further disintegration of the capacity of individuals from an extensive variety of backgrounds to live in the middle of the capital. Chambers estimated that the policies of Lewis could boost the profits of property organizations by countless pounds, even as the City of Westminster indicated that it stood to lose 1 billion pounds in affordable housing commitments. As a result of this policy, billions of dollars are set to be lost in terms of contributions for affordable housing. This in turn leads to a reduction and in turn shortage of housing in the UK (Meen 2002: 56-74).
3 Causes and Effects
The effect of these deregulatory changes includes diminishing the expense of changing empty and repetitive structures into new homes (Maliene and Malys 2009: 207-214). This includes a set of measures by the legislature to reduce the quantity of empty, unused structures across the nation. This would in turn be vital for both nature and for the community (Maliene, Howe and Malys 2008: 198-204). Unnecessary section 106 tariffs which incorporate arrangements on installments for reasonable housing will also lead to no housing, no recovery and no societal benefits (Bramley and Glen 1994: 132-147). These effects are as a result of unnecessary policing in the housing market. These policies include the Lewis policy as well as the section 106 tariffs that have dire consequences as stated in the preceding statement. The following statistics reveal how affected the housing market in the past year.
4 Analysis of Statistics since the commencement of the Vacant Building Credit Policy
UK house costs increased by 0.3% in January 2015 as the lull in activity that started towards the finish of 2014 kept on softening development, the UK's greatest building community said. After a hurry of sales in the initial part of 2014, home loan supports began to go down in the autumn and came to an end towards the end of year by around a fifth, and information from surveyors recommend there are less potential buyers searching for homes. In the first depiction of the business sector in 2015, Nationwide indicated that the month to month rate of development was somewhat higher compared to December's figure of 0.2%, yet the yearly rate of value expansion had succumbed five months in a row, this instance to 6.7 percent from 7.3 percent, its most minimal level in 14 months. The general public said the normal cost of a UK home now remains at 188,446 dollars, valued at 2.4 percent over its pre crisis climax. Different statistics from the Registry of Lands demonstrated that throughout the span of 2014, costs across England as well as Wales increased by 7 percent to an approximate 177,766 dollars.
The statistics further revealed that December had experienced a 0.6percent increase in costs, in spite of the fact that this veiled huge variations around the locales. This increase in price was occasioned by the Vacant Building Credit policy. In London, month to month development was three times that value, whereas in northwest England, costs were decreased by 1.8 percent month on month. Over the year, there was development in all areas, in spite of the fact that that in London as well as southeast and east England was more than twofold that somewhere else. Statistics from the Registry of Lands demonstrated that cost of housing in London finished the year up at 16.3 percent, valued at a normal of 464,936 dollars. I nine districts costs increased in excess of a fifth through the year, and in all aspects of the capital increments were in twofold digits. The greatest leap in costs was in the northeast district of Waltham Forest, which incorporates Waltham stow. The district experienced costs increment by 25.1 percent to a normal of 368,000 dollars. Chelsea and Kensington experienced the most reduced level of development within London, placed at 11.5 percent through the year. However, the normal cost was still a grand 1.3 million dollars.
5 Possible Solutions
Occasionally balanced figures throughout the nation are focused around home loans it has affirmed amid the month, with costs conformed to reflect the actual house, whereas Land Registry's are focused around finished sales as they are enrolled, and incorporate cash purchases with an exemption of newly constructed homes (Mulliner, Smallbone and Maliene 2013: 36-79). The sales experienced by the Registry of Lands seem probably to have been concurred prior to the changes declared by the major stamp duty in December's autumn announcement. However, the faring of the housing marketing sector since then has been poor across the UK. Poor legislations such as the Vacant Building Credit policy could lead to losses in terms of contributions aimed at achieving affordable housing in the UK. This therefore calls for the need to suspend such controversial policies. This would in turn lead to creation of affordable housing, thus triggering a reduction in housing cost (Arpegis 2003: 94-99).
Apart from suspending controversial legislation, the government could consider outsourcing financial assistance th...