Inflation

The retention market in the UK has undergone a substantial proceeding of turmoil in the last five years, which has resulted in a particularly unusual market state that warrants economic discussion. imposition There is no denying that the housing market has been the subject of such(prenominal) give in recent years and that many analysts commence unsaved it for the global credit crisis that has brought several banking institutions to their knees. It has been suggested that unsustainably gamey home metrical foot expenditures and the availableness of cheap credit resulted in a housing bubble burst which ultimately caused liquidity difficulties across the US banking sector. Although in that location has been a brief finish of retrieval in the housing market, in reality this is little more than stagnation, in terms of housing prices, rather than necessarily a evidentiary recovery. This paper aims to look at the link amid flash and dwelling house prices as the UK is currently in a period of high rising prices and then it would be expected that this, in itself, would pick out house prices back up to their former level. Although there is certainly merit to the argument that inflation should result in housing prices going up, there atomic number 18 several separate factors which drive the housing market and without these creation in practice inflation will non in itself drive the house prices.

It is concluded, therefore, that issues such as a lack of availability of mortgages and a fear within the economy as a unit of measurement have resulted in buyers being loath to pay the high prices; this, in turn, has led to a expectation that the real price of housing will, over the years ! and in the longer term, load to a more sustainable level. pretension is influential, but it is not the sole driving factor of the property market and cannot therefore be relied upon to increase property prices in such an unfit environment. Table of Contents Abstracti Introduction and Background1 Aims and Objectives3 Trends in the Last Five Years4 Buy to Let Sector...If you compulsion to see a full essay, order it on our website: OrderEssay.net

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