The On The Uk Housing Market Essay

1289 Words Dec 10th, 2014 6 Pages
1.0 Introduction
The UK housing market has experienced substantial growth in the last one year. In particular, the market has seen an increase in the number of transactions and new homes being constructed. In 2013, 1.07 million sales of residential property were recorded in the UK (Beckett 2014). Thus, the market is fundamental to the cash flows within the country as it influences both lending and investment. For instance, at the start of 2014, there was an increased demand for mortgage, which was estimated at ₤1,281 billion. Evidently, this is a lucrative option for investment by a lender or a real estate agent. However, as common with other asset investments, there are potential risks, such as external shocks (Stephens & Williams 2012). In this context, it is necessary to assess the market so as to gain a better perspective of its performance.
In this study, the assessment of the housing market is restricted to the Sheffield local authority. A convenience sample of 100 houses in Sheffield is drawn from a list of properties at www.righmove.co.uk. Afterward, data on four important variables, including house type, house size (number of bedrooms), type of tenure and price are collected from the houses. In this case, house type is a categorical variable having four distinct categories that are coded into a quantitative form in Excel (1 = Terraced, 2 = Flat, 3 = Semi-detached and 4 = Detached). On the other hand, the type of tenure is a categorical variable indicating the…

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