Determinants Of Demand In The Housing Market

898 Words 4 Pages
Register to read the introduction… There are many different factors why supply can be effected such as government intervention, planning permission and general rules and regulations to the housing industry. Housing can either be sold from seller to buyer, or a number of newly built houses by specialist housing development companies or even houses that have been completely redesigned for sale. But the above factors can intervene on buyers decision making. This can also lead to change in demand such as substitutes instead of domestic housing such as flats, apartments or even renting out a house. There are many different elements part of the housing market such as bungalows, flats, apartments and mobile homes. But part of those element are the types of, for example, houses you can buy such as semi-detached or detached. All these fundamentals are carefully examined by buyers, so investing in to a home can be seen as a lengthy procedure. Processes such as mortgages can be seen as long winded and time consuming for first time or regular buyers. Another factor which could effect both determinants is that house owners would rather choose to refurbish or have extensions, which also involves the process of gaining the correct planning permission. This process is known as a barrier to entry, where property developers will need to follow strict rules and regulations to access particular grounds and …show more content…
The S1 shows us that even though the average prices have gone up in this area there is significant evidence that sales are still on the rise. For supply, the higher the price of a good the more easier it is to make a profit. So therefore this gives us the suggestion that households see housing as a necessity, as for an example, ideal for upbringing for families. Another issue that has risen from this supply and demand graph, that being the question of land. There are several million properties in Britain there are several thousand homes built a year, even though there is plenty of land to build these houses, property developers need to attain the correct planning permission and construction

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