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Taking Examples from Either the Housing Market or the Commercial Property Market, Outline and Discuss the Economic Factors Influencing Supply and Demand for Your Chosen Property Type.

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The housing market in UK has been effected in many different ways, from immigration to shortages of homes I am looking to discuss these factors in depth.

The demand of houses depends on what the interest rates are, as this will decide whether the buyer will be able to get a mortgage at a cheaper rate. The lower the interest rate the more demand of houses and the more demand in houses the higher the price. The supply will depend on what the price of the house is. The higher price seller will get more people would want to sell it. This is short term as when more houses appear on the market it will lead to a reduction in price if there isn’t enough demand. A possibility to why the demand is high could be the issue of immigration. Immigrants are placing huge amounts of pressure on the housing market driving up rents and property prices. The massive influx is also forcing the government to dramatically revise its house building targets, putting greenbelt land at risk. On average 100,000 new houses will be needed every year over the next decade to cope with immigration. Foreigners are also placing demand on council and other social housing taking a minimum of 10,000 properties last year.

The UK has seen several changes in the property market over the last decade. Changes in Government policies and cuts have influenced many changes in the property market. The government has tried to keep up with the demand but as the population grows there are more people in the economy and therefore there is greater demand for housing, but you have to take into account the family size, death rates, marriages and divorce rates. As divorce rates rise in the UK it has had an effect on the housing market as more home are needed to keep up with the demand. Social factors have decreased the average number of people in a household. People also get married later in life has increased the

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