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

Should the Government encourage home ownership?

Extracts from this document...

Introduction

Should the Government encourage home ownership? With the current economic downfall, high unemployment rates and the economy going into a vicious recession, you'd think that the last thing the government should be concentrating on is pushing "home ownership" rates higher. However, the social advantages in which "home ownership" is good for society certainly appears as one which the government should be backing. Among the benefits of home ownership rather than renting are: Home ownership gives an incentive to invest in their local community. Owners are more likely to vote in local elections and volunteer for social activities. There is also evidence that homeowners have higher "self-esteem and happiness" than renters which has a favourable effect on their productivity at work. ...read more.

Middle

This will make them work harder and gain more qualifications in order to gain better jobs with higher salaries, which would be used to pay off their mortgage. The government's various home ownership schemes and initiatives aim to make more affordable homes available to first time buyers priced out of the housing market. One of these is the "HomeBuy" schemes which help buyers by subsidising part of the cost for their house. The drop in mortgage rates has also improved the housing market slightly, with many banks following the government ordered policy to cut mortgage rates in light of the economic crisis. The government's new policies and rules have led to an increase in homeowners with "The Daily Telegraph" estimating over 2 million new homeowners since 1997. ...read more.

Conclusion

All this has enabled benefits for those with low incomes. The Government have moved decisively to stimulate the economy and fend off a major chance of a recession or economic slowdown. The "housing market" will now almost certainly depend on the decision of "first time buyers" with over 20% of potential home buyers falling into this category. Any stalling in this section of the market would have a significant impact on the housing industry and its decreasing property values. With first-time buyers having problems with securing deposits, the initiative offered by the government combats this problem in a sensible way. Should the government continue to encourage home ownership? The answer, from both an economic and social point of view, is yes because it facilitates first time buyers and strengthens the "housing market" at a time when the UK economy is likely to face recession. ...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 Case Studies 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 Case Studies essays

  1. Peer reviewed

    Type of Ownership

    4 star(s)

    Therefore, this man would form a partnership with his friend. My Choice of ownership For my retail shop, I have decided to become a sole proprietor because it is easy to set up the shop i.e. cheap, quick and simple.

  2. unit 8 business online p1

    Operation Issues- Most online customers expect to be able to pay by credit or debit card. They also have to be certain if their personal details will be kept confidential. People get put off by hearing about fraud, identity theft and hackers.

  1. This marketing report is going to look at the internal and external analysis of ...

    The collapse of XL Leisure Group last year has also largely contributed to operators cutting capacity, as well as the mergers of TUI with First Choice and Thomas Cook with MyTravel. The collapse of XL Leisure Group has reportedly cost Mark Warner �280,000 as they were heavily dependent on the company's flights.

  2. Analyze the impact of globalization on the economic development and standard of living in ...

    As a result of this globalisation local foreign producers have the advantages over importers of being able to use the low-cost labour in China and saving the cost of transporting the final products to China. China is also committed to reducing non-tariff barriers on imports.

  1. This GCSE coursework is about setting up a free-range egg unit in the Retford ...

    He informed me that his land to bird ratio is 2000 birds per hectare. When I checked on the internet I was able to confirm that this was the minimum recommended by the R.S.P.C.A freedom food regulations. I was able to establish that a portable building may be the best option when considering planning requirements.

  2. Essay on Economic Impact of China

    These zones allowed foreign direct investment and enabled companies concessions on taxation and other restraints. This "open door policy" was the key feature of China's modernisation. Multinational Corporations were attracted to China because of their low production costs, particularly for labour-intensive industry.

  1. Would the opening of a fast food restaurant on Riddy lane (Luton) represent a ...

    I used the questionnaire to find out whether a new fast food business would show demand or not. An advantage for using a questionnaire is it is up to date which will lead to a firm decision. A disadvantage for using a questionnaire is it's time consuming, as you have to ask lots of people to reach a firm decision.

  2. Critical Success Factors in a Competitive Dairy Market

    Once again, this goal is built into their vision statement when they claim that "We will be the most efficient provider so that we can be the best value to the most people" ("McDonald's Worldwide" 5). McDonald's incorporates several avenues to provide great value to its customers: * One strategy

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