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Managerial Economics

In: Business and Management

Submitted By jewelmiajee
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LONDON SCHOOL OF COMMERCE

MANAGERIAL ECONOMICS

18TH OF OCTOBER 2012
Submitted By- Jannatun Nayem Sultana Runa
ID—B0279KDKD0412
BA (Hons) SEMESTER-2

Lecturer-- ELLIE SAMSER

Contents Pages Introduction 3

Aim 3

Limitation 3

UK Housing Market 3

Review of UK housing market 3-6

Factors effect in UK housing market price 7-14 a) Demand 7-11 b) Supply 12-14

Present situation/scenario 15

Government innovation 19-21

Conclusion 22

References 23-24

INTRODUCTION
The UK housing market has experienced a varied rate of ups and downs in house prices for past few decades. During the past 30-year period, the nominal and real average annual price in UK has undergone volatile changes. There were three boom periods: 1980s, late 1990s and early 2000 and a bust in early 1990s (Sloman, John2006). These rise and falls in house prices had been primarily caused by the changes in demand for housing. Being a big open economy, UK is not really affected by external shocks caused by changes in international prices and currencies but by various internal and associated factors. Money supply and government policies are believed to be important factors behind the booms. The primary reason behind the increase of money supply was continuing high economic growth during the concerned period.
From examination of historical development of the UK housing market, it can be argued that house prices fundamentally come under pressure from many aspects: demographic pressure, increasing income, accumulated wealth and so on. However, present trend of the housing market has not given birth to any alien determinant that is causing the market to behave abnormally. This paper attempts to analyze the determinants of house market price, review the market in retrospect, examine the present scenario and forecast prospect for near…...

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