Supply and Demand Analysis of Private Housing Prices in the UK | Assessment Question

Task 1: Factors Affecting Private Housing Prices in the UK

Assessment Question

Supply and demand analysis allows us to investigate and understand how the operation of markets, or sometimes the failure of markets.  

Task 1 (1250-words)

Using supply and demand analysis identify the main factors in determining the price of private housing in the UK. Support your analysis with the use of supply and demand graphs. (50 marks) 

Task one assessment criteria:  

1.Knowledge and understanding of the language of economics. 

2.Knowledge and understanding of the basic methodology and models used in this area and their application to real- world situations.   

Points to consider: 

A range of factors need to be clearly identified. These could include: 

Interest rates 

Stamp duty 

House building 

The income effect 

Regional / local demand factors 

Population.  

This is not an exclusive list. 

Diagrams must be included. Demand to right / left and the effect on private house prices. Supply to right / left and the effect on private house prices.  

Some research into house price trends in UK housing marketing.-

20 years to reveal and comment on the fluctuations in the market.

House prices to interest rates.

Explanation of basic supply/ demand / equilibrium diagram.

4 diagrams showing , demand shift to right/ left, supply right/ left. The effect this has on p and q. At least one factor which could cause each shift.

Elasticity diagrams. 

Demand – supporting factor

Supply – supporting factor- short term long term.   

Must to draw 8 diagrams to explain the housing market 

Basic and Supply demand theory 

Explain each of this diagram how and where? 

Price and Quantity 

From 2008 (financial crises) until now Brexit the housing prices. 

1.Demand shift on the right

Better transport links 

Better schools 

More jobs 

Better population

Less crime

Lower interest rates- interest rates are our complimentary product (researches)  

Less deposit 

2.Demand shift on the left

Higher unemployment 

Higher crime

Bad schools

Bad transport links 

If interest rates are going up the demand for housing is going down 

Less wages 

Less opportunities 

Less infrastructure

3.Supply shift on the right

New build properties 

About the building of houses

4.Supply shift on the left

5.Supply and demand on the right in London 

Building more houses 

Prices is continuing to go up because there is more shifting more demand on the right 

6.Supply and demand are going on the left 

Its more for poor part of the country- Manchester and Liverpool- is not enough houses been built.

7.Demand is shifting to the left and supply is shifting to the right 

Supply is increase and price comes down 2007-2008

8.Demand is going to the right and supply is going to the left 

If the supply is going on the left and the price is going up. 

Task 2 (1250 words)

Identify and explain the main government/ economic policies that can be used to stimulate the demand for private housing in the UK.

Task two assessment criteria:   

1.Knowledge and Understanding of the basic methodology and models used in this area and their application to real- world situations.

2.Intellectual, practical effective and transferable skills. Achieved through the ability to analyse hypothetical and/or real-world situations that occur in economics. 

Points to consider: 

The main economic policies. These could include 

Interest rates 

Stamp duty,

Right to buy schemes/ affordable home ownership schemes 

Planning permissions/ green belt land

Refer to five policies.

Which do they think works best and why? 

Note: 10 marks are available for referencing and effective communication 

Before send it to me, check the similarity in Turnitin- max 15%.

Write introduction and conclusion.

Use the Harvard Referencing system- min 10