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

Supply and Demand in Housing in Britain.

Extracts from this document...


Supply and Demand in Housing in Britain. House prices in Britain have clearly been increasing over time, however, this rise has not been continual and there have been some fluctuations. Fluctuations in this case are changes in price, from the graph we can see that house prices have not fallen between 1973 and 1988, and that there has been a steady rise over these years. But from 1989 through till 1996 the house prices are falling. This fall in price is called negative equity. Negative equity can result from a decline in the value of an asset after it is purchased; in this case the value of a house. This can be a problem for the owners of the houses. If somebody were to buy a house in 1988, they would not be able to sell it at the price they bought it for until mid 1998. ...read more.


* Income - If peoples' incomes were to rise then they would have more money, making them more willing to buy a new house. This would bring demand up, along with the price of housing. If incomes fall then people will not have the money to move to a more expensive house, making demand and the price for houses to go down. * Price of Substitutes - Substitutes are alternatives to buying houses, for example rented accommodation. If the cost of renting accommodation went down then the demand for it would rise. This would cause a fall in demand for buying houses. If the price of substitutes went up, then the demand for housing would rise; as people would be more inclined to buy a house rather than rent it. At the moment it seems that the price of rented accommodation is going down, while the price of housing is clearly going up. ...read more.


If it is more expensive to build flats then more houses will be built than flats, so this will cause supply of housing to go up. * Other Uses of the Land - If there is more profit and better causes in using land for other purposes, for example, farming then the supply of housing will go down. There is a limited amount of land in the UK and this must not only be used for housing. Large amounts of land are used in the UK for farming, and this uses up potential areas for housing developments. * How Easy It is To Build Houses - If people demand larger houses then it will be more difficult to give the public what it wants. If houses are bigger then there will be less time to build smaller houses. This will affect the demand for labour, as more builders will be needed. With few builders supply will go down, as enough houses cannot be built. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research 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 AS and A Level Marketing & Research essays

  1. Applied Business Studies

    Compared to the good quality products that are in the stores, for example, London Theatre Store, it is pretty cheap. I am selling the same products, but as London is a big place, and all the best shows take place there, then it would be.

  2. Aravind Eye Hospital - Case

    A 70-bed hospital meant exclusively for free patients was built in 1978. The existing paying hospital building was opened in 1981 with 250 beds and 80,000 sq. ft. of space over five floors. The initial focus was on cataract surgery, but other specialties such as retina, cornea, glaucoma, paediatric ophthalmology, neuro-ophthalmology, uvea, low vision and orbit were gradually added.

  1. Marketing Research

    Chapter 4 : Developing the research plan 4.1 Data Source 4.2 Research Approaches The previous chapter threw some light on the steps in a marketing research process. This chapter will discuss the stage 3 of the marketing research process with focus on stage 1 and stage 2 i.e data source and Research Approach in detail.

  2. SunCity - developing marketing strategy for problem

    It is a major problem for Sun City because their primary source of income is from sunbeds and if less and less people are using sunbeds because of this, Sun City will in a very difficult situation.

  1. Promotional Activities

    These offer supported housing, crisis help lines, drop-in centres, counselling, befriending, advocacy, employment and training schemes. Campaigns help to improve the lives of people with mental health problems, and developing and advising on the health and local authorities, government, the public, and the mental health community care.

  2. UK Housing Market

    However the main factor that contributes to an increase in consumer confidence is time. If there is a long period of stability in the housing market, then this could increase people's confidence, however the opposing argument would be that there may be a sudden fluctuation in the market, as there

  1. In order for British construction industry to do what they are best capable of ...

    Privately owned housing is a normal good for most people. AS average living standards rise, the total demand for housing expands as does the demand for more expensive properties as people look to 'move up the market'. This will increase the work and demand for constructionline and other building and

  2. Explain how a firm's long run demand for labour is derived

    Moving from A to B will maintain the level of output but change the ratio of inputs. In this case it will lower the capital stock from K1 to K2 but increase the level of employment from L1 to

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