Uk House Prices: An Analysis Of Price Changes

Business  Economics  and   Management  Science 2010 UK  House  Prices:   An  depth psychology  of   wrong  changes  from  2007  to  2009 B000302 Word  count:  1,294  of  the  allowable  1,320  (1,200  +  10%) excluding  Atle  page,  sub-­?headings,  tables,  bibliography,  and   extension 15  November  2010 In  the  past   tierce  years,  the  pricing   tendency  of  houses  in  the  UK  has  been   sight  to  rise  unAl  2007,   to  crash  because  of  the  ?nancial  crisis  of  2008,  and  to  recover   behind   in  2009  (NaAonwide,  2010).     sensation  can  argue  that  these  prices  are   in the main   determined  by   the  behaviour   of  four  stakeholders:   the   investors,   the  ?nancial   insAtuAons,   the  home   owners,   and  the  pecuniary   authoriAes.     This   essay   go away  succinctly   tackle  three   main  points:  a)  how  these  stakeholders  are  inter-­?related,  b)  how   their   acAons  a?ected   the   demand,   deliver,   and   prices  of   houses,   and  c)   an  examinaAon  of   the   di?erent   housing  demand  elasAciAes.    As  such,  the  essay  will  be  divided  into  three   move:  before   the  ?nancial  crisis,  during,  and  aYer.

    source:  Halifax  &  NaAonwide  as  cited  on     Before  the   pecuniary  Crisis:   low  interest  rates,   eminent  demand  for  houses,  high  supply  of   address Following   original  events  like  the  Dot  Com   binge  in  2000   and  the  September  11  a]ack  on  N! ew  York   in  2001,  the  US  treasury   move  the  interest  rate  to  1%  to  keep  the  economy   a?oat  (The  Federal   Reserve,  2003).    Because  1%  is  an  highly  low  return  on  investment,  many  investors  who  usually   invested  in  government   securiAes  looked  for   other   high   yielding   opAons.     On  the  other   hand,   ?nancial  insAtuAons  like  banks  were  able  to   extend  their  borrowing  at  1%.    At  this  rate,  they  were   gegng  cheap  credit  and...If you want to get a full essay, order it on our website: OrderEssay.net

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