Introduction:
London is one of the world’s most famous and expensive cities. It offers a lot of opportunities to people to work on it. However, most of the people cannot afford its property prices and cost of living there. London became the most expensive city in the world instead of Hong Kong for firms to locate labors. Moreover, its house prices are going up rapidly especially in the last year the prices have been increased by 18.4 percent. Due to that London became the priciest city in the world to live and work. Due to the large amount of people who want to work in the United Kingdom instead of other countries, for example; Canada. United Kingdom became the second attractive location in in the world after United States by 37 percent. This …show more content…
This fact applies in the property market also, where the supply of properties for sale and the demand for housing to take must locate costs. The amount of houses for sale must be specified by issues which impacted the accessible property stock, counting the price of construction of recent home and the availability of ground. On the other side, demand in measures by three things which are amount of income, demographic growth and willingness to buy an apartment. As I mentioned before, the cost for particular household market, in paper, reverberates the equilibrium between the supply of properties and the demand of people whom are living in these properties On the other hand, the demand and supply for properties can be distorted by alternative issues irrelevant to their basic determinants. From the demand side, for instance, the usage of property as a long term investment(business) may encourage extra demand from homeowners and investors, trying to assume surplus from speculating on a property’s worth in the future. Owing to the fact that, more demand on properties, directly the prices of houses will increase due to expectation of a constant supply. London house prices could rise more than before due to this speculative demand. Investors have the power to decrease the supply of available properties by leaving their investments houses or …show more content…
To return the balance between them, government should follow three steps; building new properties, use empty houses again and change non-residential houses to residential houses. Especially in London to recover the shortage of houses. In contrast the government failed to build recent buildings, the main issues were related to lack of arrangement.
It seems that, home builders claim that planning system is the main issue behind slowing them and keeping the state below its target in the last few years. Since 2009 to 2016 planning and development have been reduced by more than fifty percent, on the other side social care has been fallen by less than ten percent and total net current expenditure has been reduced approximately seventeen percent (Fraser, 2016).
What citizens
London is one of the world’s most famous and expensive cities. It offers a lot of opportunities to people to work on it. However, most of the people cannot afford its property prices and cost of living there. London became the most expensive city in the world instead of Hong Kong for firms to locate labors. Moreover, its house prices are going up rapidly especially in the last year the prices have been increased by 18.4 percent. Due to that London became the priciest city in the world to live and work. Due to the large amount of people who want to work in the United Kingdom instead of other countries, for example; Canada. United Kingdom became the second attractive location in in the world after United States by 37 percent. This …show more content…
This fact applies in the property market also, where the supply of properties for sale and the demand for housing to take must locate costs. The amount of houses for sale must be specified by issues which impacted the accessible property stock, counting the price of construction of recent home and the availability of ground. On the other side, demand in measures by three things which are amount of income, demographic growth and willingness to buy an apartment. As I mentioned before, the cost for particular household market, in paper, reverberates the equilibrium between the supply of properties and the demand of people whom are living in these properties On the other hand, the demand and supply for properties can be distorted by alternative issues irrelevant to their basic determinants. From the demand side, for instance, the usage of property as a long term investment(business) may encourage extra demand from homeowners and investors, trying to assume surplus from speculating on a property’s worth in the future. Owing to the fact that, more demand on properties, directly the prices of houses will increase due to expectation of a constant supply. London house prices could rise more than before due to this speculative demand. Investors have the power to decrease the supply of available properties by leaving their investments houses or …show more content…
To return the balance between them, government should follow three steps; building new properties, use empty houses again and change non-residential houses to residential houses. Especially in London to recover the shortage of houses. In contrast the government failed to build recent buildings, the main issues were related to lack of arrangement.
It seems that, home builders claim that planning system is the main issue behind slowing them and keeping the state below its target in the last few years. Since 2009 to 2016 planning and development have been reduced by more than fifty percent, on the other side social care has been fallen by less than ten percent and total net current expenditure has been reduced approximately seventeen percent (Fraser, 2016).
What citizens