Housing in UK Master Essay Research Paper Example | Topics and Well Written Essays - 1750 words

Major Causes of Rising House Prices in the UK - Research Paper ExampleOver the experience thirty years, the housing prices in the UK give amplificationd in real terms by most three per cent a year. This is in contrast to other countries like France, Sweden and Germany where real estate prices have remained broadly constant or even declined. The determination of prices in local and regional housing markets is a classic example of microeconomics in action. Each housing transaction in the UK depends on the price the marketer is willing to sell his property and on the price the buyer is able to pay for it. Buyers place offers for a property that the trafficker tail end either accept or reject. When the market demand for properties in a particular area is high and when in that location is a shortage of quality properties (i.e. supply is scarce) then the seller has the upper hand. This is because there is likely to be excess demand in the market for good properties. Sellers can wai t for offers on their property to reach (or exceed) their minimum selling price. Often multiple offers fuel an increase over and above the request price. When demand both for new and older housing is weak and when there is a glut of properties available on the market, then the power switches to potential buyers. They have a such(prenominal) wider choice of housing available and they should be able to negotiate a price that is lower than the asking price.When the demand for houses in a particular area increases due to say, an increase in population into the area, or a rise in incomes due to job growth etc., there is upward pressure on market prices.