• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

House prices in the southeast are far too high for people to afford

Extracts from this document...

Introduction

'House prices in the southeast are far too high for people to afford' The above statement is supported by the latest Regional Trends report which stated that, "household expenditure and housing cost for those living in the south are higher than the national average and house prices continue to rise at a faster rate." There is an astounding difference in the prices of properties in different regions of the UK. An example is of this is of a three bedroom properties that requires some modernisation in London would dig a hole in your pocket at a price of �275,000. Whilst in contrast, a property with similar specification, which does not require any renovations in Birmingham as of the London property, would be a ridiculous saving of �206,500 at only �68,500! Average London house prices have now broken through the �200,000 barrier for the first time, increasing fears that prices are unsustainable. Greater London is the most expensive place in the UK to buy a house with average prices rising by 6.65% per cent to �205,831 at the end of June from �193,004 a year earlier. ...read more.

Middle

In addition, that total of households, earning less the �20,000 a year, excludes those who are already being housed in the social sector by either local authorities or housing associations. Many of those people will fall into the category of key workers like teachers and nurses or they will be working in low-paid service industry jobs. If those people can't afford to live in the Capital then the labour shortage, which already exists, and is hampering business activity, will get worse. The Mayor's recent Housing Commission recommended building an extra 43,000 houses each year to meet projected demand with 29,000 of them in the affordable to those on moderate to low incomes. But FPD Savills' Director of Residential Research, Richard Donnell, said, "This will require London's current housing output to be increased by a factor of three and sustained for the next 10 years. This is simply not realistic or feasible given the chronic lack of suitable land." The population of the country has risen from 52.8 million to 58.2 million in the period of 32 years between 1961to ...read more.

Conclusion

The opportunity cost of living in London is less pollution, less traffic, more community spirit, more space and bigger houses for the same price of a smaller one in the city. In addition, the loss time spent travelling and cost of travelling is accountable. In conclusion, a general assumption can be made that whilst the rich established and single younger working generation are able to afford to pay the rising house prices. Those disadvantaged, are ones that have a family to look after, as well as the old and retired population that do not necessary need to live in the city in the first place. For most, house prices are too high for people to afford. The Halifax survey said: "Low mortgage rates and a continuing strengthening in economic activity should underpin a relatively strong housing market during the remainder of this year and through 2000." The Mayor of London, Ken Livingstone has made a proposal to build more properties to meet the demands, we just have to wait and see whether price inequality in the different regions of the country would ever balance out. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Case Study: The Home Depot

    In the EFAS and IFES together only 20 internal and external factors were described. For the formulations of a strategy, 20 is too much. That is why the SFAS only consists of 10 strategic factors. This is done by putting the highest weighted EFAS and IFAS factors appear in the SFAS.

  2. The Quest for Optimal Asset Allocation Strategies in Integrating Europe.

    therefore the following: The optimisation problem thus requires finding the portfolio weights w1, w2...wn that minimise the portfolio's risk (as measured by the portfolio variance), given an expected return and a budget restriction of a fully invested portfolio in which all weights should sum up to one.

  1. Management of People In Organisations

    The implications to successive governments are far reaching. Fundamentally the role of government is to manage the country utilising all available resources, more specificly - finance. An aging population will present ever increasing demands on pension and health resources. In 1994 Mallier and Shafto (pp38-54)

  2. Is residential property in the UK a good investment?

    Even if the price of housing suddenly shot up it does not mean that the supply of housing would suddenly increase like the price. Of course there would be more supply of housing but as the figures above will show the supply can not match soaring prices.

  1. This report will establish the opportunities and threats presented to Sony by the EU ...

    Nevertheless, there are some consequences from merging, like when it comes to rationalising your staff because you have to make some redundant. This does decrease morale within the organisation and if staffs are not happy that they have lost colleagues it does lowers quality.

  2. Free essay

    Do high house prices in Trafford deter key public sector workers from seeking a ...

    On the diagram above the equilibrium price is P. If demand is not equal to supply there will either be excess demand (too much is demanded by consumers and not enough supplied) or excess supply (too much supplied and not enough demand for all the goods).

  1. Retailing In India - A Government Policy Perspective

    The key reasons for this difference are the low labor costs in India, the small size of the stores and the sale of products such as loose grains and oil that do not lend themselves to self-service. 11. Low Entry Barriers: The low entry barriers for counter stores, combined with low-income levels, leads to low capacity utilization.

  2. How to predict house prices.

    It also introduced new arrangements for financial subsidies on council housing. Reducing the amount of assistance that came from the Government and Exchequer. The 'Right to buy' also gave the local authority tenants a discount on the market price of housing, which encouraged more and more people to purchase their homes.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work