RECENT DEVELOPMENTS IN THE UK HOUSING MARKET
Question 1: Describe how UK house prices have changed since 1998. To what extent have there been regional differences in the behaviour of UK house prices over this period?
ANSWER:
Since 1998 house prices have raised by 17% in 2002,15.7% in 2003,11.8% in 2004 compare to the price in the 1980s.in the 1970s and late 1980s the growth in the house prices was coincided with the period of the general inflation, so therefore in 1998-2008 hose prices are rising but at different rate but in negative figures. Within this period the UK house prices behaved fairly similarly within the regions.
Within this period there have been a regional difference in the uk house prices over this period, whereas London stands out when other house prices are growing at three times in the national average, examples places where house prices are cheaper like wales and northern Ireland have tend to have higher rates of unemployment than places where house prices are more expensive like London and south east. Also in the regional difference there is possibility for people to migrate from north of England to south east and London.in other words it is aid that the k house prices have really gone down recently. Question 2: How have UK house prices behaved relative to general inflation and incomes? How would you describe the current affordability of UK houses?
ANSWER:
The affordability of the UK house prices depends on two things which are the income and the interest rate of the country. The real rate of interest adjusts the nominal rate for inflation, the affordability of the up house prices deteriorated from the late 1990s; the growth in house prices in the late 1970s and 80s coincided with periods of the strong general inflation. But currently affordability of house prices has been easier because the income rates have increase between 1998 till