Does the History of Property Prices Determine If the UK House Price Bubble is About to Burst?

Authors Avatar

Does the History of Property Prices Determine If the UK House Price Bubble is About to Burst?

Area and context of research

The topic that I have chosen for my research proposal is based on house prices. I have chosen this subject because over the year’s UK house prices have risen so dramatically making it difficult for people on low wages to buy a house. This topic has caused a lot of discussion with buyers and sellers as well as banks that give out mortgages. It has also made it into the news and caused a lot of attention in the financial press. There are many positive effects to this as well as negative ones. On the of the most obvious positive effects is that homeowners’ asset wealth increases as the price of their house increases and the most obvious negative effect is that people who are wanting to buy a house can’t because the prices are so high.

The focus of this research proposal is to gather information that will help me to determine whether or not past examples and situations can be used to predict what will happen to the price bubble that the UK housing market is experiencing at the moment. I have collected some information to help me answer the question and also help me analyse it.

Join now!

Literature review

I will be reviewing journal articles and books that talk about the housing market and the effects it undergoes when a ‘bubble’ occurs. I will also be reviewing literature which explains the aftermath of the ‘bubble’ bursting and the consequences are. I feel this is a key point to clarify because from this I can see what past cases have been like.

One of my main sources of information is the JSTOR: Economic Journal. One article I came across is ‘Booms and Busts in the UK Housing Market’, by John Muellbauer and Anthony ...

This is a preview of the whole essay