This website uses cookies to ensure you have the best experience. Learn more

An Analysis Of The Key Macro And Micro Economics Factors Which Impact On The Current Uk Housing Market

3233 words - 13 pages

An analysis of the key macro and micro economics factors which impact on the current UK housing marketIntroductionThis paper explores the current situation in the UK housing market. Fundamentally, the paper argues that the current situation in the housing market is a legacy of the way in which the housing market developed over the early 2000s into the 2007 and 2008 financial crisis. As the fall out from this crisis has taken two or three years to properly be felt it can currently be said to be exerting a major influence on the way the housing market in the UK is working today. The paper therefore places a major focus on developing an understanding of how the financial crisis occurred and the impact that this had on the UK housing market, in order to understand the key factors which are shaping the housing market today. The paper begins with a look at the state of the UK economy at the moment. This is only examined in brief but provides a key background to the work. This is then followed by a look at the UK economy and the housing market and how the two link together. The following section is the major section of the work as this focuses on the macroeconomic factors which have shaped the housing market. This section in particular focuses on the legacy of the housing market developments of the early 2000s. The following section briefly explores the microeconomic elements which have shaped the housing market - the major emphasis here is on the role of buy to let mortgages as a means of investing. This is then followed by the final critical reflection before the work concludes.The state of the UK economyLike most markets, the housing market is heavily influenced by the state of the wider economy (NEF 2010 p.65). However, interestingly, several economist have noted that in major economies including the UK, the housing market has moved "out of step with the business cycle" (Jones and Watkins 2009 p.1). A similar point is made by Andrew (2004). In 2007, a major financial crisis was triggered in the USA by the collapse of Lehmann Brothers Bank (Brown 2010 p.5). The knock on effect of this had a major influence in the UK, with several major banks teetering on the edge of collapse. Had this been allowed to occur there is significant evidence that the housing market would have collapsed and prices would have changed dramatically. This point has been made very strongly by Brown (2010). However, the government's intervention and bail out prevented the collapse of these banks and so the housing market remained relatively stable. However, the fall out from the bank bail out has seen government fiscal policy heavily contracted and this has caused wider economic problems in its own right. Rising unemployment continues to dog the economy, as does a lack of growth and declining confidence in the policies introduced by the government.Currently, the UK economy is in thrall to the austerity measures which were taken in light of the crisis by the Conservative led...

Find Another Essay On An analysis of the key macro and micro economics factors which impact on the current UK housing market

Macro and Micro Economic Factors that Influence Plant Activity

1366 words - 5 pages This paper will first discuss factors that describe and analyze the macro- and micro-economic factors that could directly or indirectly influence plant operations here at ABC Complete Kitchens. Next, it will explain legal considerations that our organization must be prepared for, which are also relative to obtaining credit, having reliable market conditions, and avoiding product liability Capital Investment One of the most important concerns

Supply and Demand in UK Housing Market

2765 words - 11 pages itself. This work will analyse the different factors that affect demand and supply when buying a house in London.The diverse population of London leads to a wide range of types of housing being available: houses, flats, bungalows, maisonettes among some others, having the majority of its housing market as a second hand one.This reports will make a detail analysis of the London housing market, focusing on the main factors that affect the supply and

THE UK HOUSING MARKET IS BROKEN - Bsc Business management - Business management

1666 words - 7 pages THE UK HOUSING MARKET IS BROKEN Finally, an admission from the chancellor that Britain’s housing market is well and truly broken. Even a political party overflowing with estate agents, landlords and property developers knows the housing market is falling, not least because their own sons and daughters despair at affording a home. But grand promises of 400,000 new homes, a help-to-buy scheme in London, and a doubling in the budget may still not

Siemens UK. write in detail about the current situation in Siemens UK. write about the different products which Siemens manufacture and the different markets they cater

8456 words - 34 pages manufactured by different companies. Siemens here has an advantage that they are the market leaders in nearly all the fields where they sell their products. Thus, they have an influence on the buyers.Rivalry amongst Existing PlayersThere hasn't been any new entry in the current competition in the UK market. They companies are the same which have been making the products. Every company has their specific market share and it fluctuates at a very low pace

Additional factors which might be considered when examining the impact of Foreign Direct Investment on economic growth. Using Brazil as a case study

3224 words - 13 pages not occurring.This paper argues it is the mode in which FDI was attracted to Brazil, which failed to allow the benefits of FDI to be fully realised. This paper further suggests, there may be sectors within an economy which will allow the dependant variables of FDI to develop more than other sectors.This paper concludes that little focus to date has been offered to these additional factors and their impact on economic growth. Given their

Learning Team Meeting Three Assignment D. Describe the pace at which your product will move through the product life cycle and the factors that will impact its movement

2145 words - 9 pages Learning Team Meeting Three AssignmentD. Describe the pace at which your product will move through the product life cycle and the factors that will impact its movement.Product Lifecycle Management, PLM, integrates engineering, manufacturing and service to reduce costs, improve quality and reduce time to market. Today, PLM has evolved to include the entire enterprise. This means coexistence with other point solutions and enterprise applications

The Micro and Macro Environment

1011 words - 5 pages general business cycles, as opposed to the performance of an individual business sectors. Micro environment, the aggregation of all elements in or immediately surrounding a business that can affect its performance including its internal environment, its suppliers, its marketing intermediaries, its customers, its competitors and the community. Factors that affect the business environment in the host country include currency value

Select an industry discuss the macro and micro environments that are currently impacting on this industry

2662 words - 11 pages (Research and Markets Adds Report: 2008 Asia - Telecoms, Mobile and Broadband in China 2008).2.0 IntroductionAlthough the China market is large, it has low penetration rates and this is good for the future growth in the cell phone industry. The increasing numbers of people have acquired more than one mobile phone. The following paragraphs will discuss about the macro and micro environments on the cell phone industry and the impact of the changing

An Analysis of How the Housing Market Affects Impoverished Neighborhoods

1604 words - 7 pages I. Introduction The housing demographics of low-income communities have large effects for residents living in those areas. The objective of this report is to shed light on how the housing market in the city of Oakland affects current and future residents. In order to analyze its affects, I look at several factors within the housing market. There are several factors explaining why cities similar to Oakland are continually impoverished and

finacialization and the housing market

715 words - 3 pages global distribution is what caused the market crash (Coe, Kelly, and Yeung, 2013). The housing market crash was a response to a chain of businesses and people who believed that the old laws of banking were no longer important. Banks were no longer required to hold on to mortgages for 30 years which gave them the ability to sell off to other companies, without concern for the mortgage holders. David Harvey, a renowned geographer, warned us of this

The Housing Market as an Economic Indicator

2259 words - 9 pages decline of the housing market which can act as a deterrent to growth and can cause a ripple effect in the rest of the economy. The housing market is an excellent economic indicator, and with historical perspective reflects cycles of growth and decline. While the market has been in a decline current figures suggest that existing home sales are on the rise and new building permits may be headed in the same direction.ReferencesColander, D.C., (2004

Similar Essays

Macro And Micro Economics Essay

1210 words - 5 pages that fulfill rules of origin can enjoy tariff savings of 1%-35%, making exports more cost competitive in the market.Tax Planning & Savings:Proficient supply chain planning and sourcing may significantly impact the duties to-be paid. Singapore through its FTA network and by following a proficient supply chain strategy minimizes tax paid by it on international Trade; the results of which can be seen in below presented graph:US-Singapore

The Uk Housing Market Essay

1422 words - 6 pages and Lam, 2001)3.Factors determining the Supply of Houses•Own priceThe price of houses is on its own a factor that affects the supply. If the current price is low, building companies are not motivated to build new houses, because they cannot make profits, therefore the supply is low. If the current prices in the housing market are high, companies build more houses in order to make more profits, leading supply to higher levels.•Input

Housing Market In The Uk Essay

3222 words - 13 pages I Housing market in the UKIntroduction:The housing market in the UK is under a lot of pressure because of the fact that the UK economy is under inflation and constantly increasing interest rates on the mortgage. The major factors influencing are inflation, interest rates and the income of the people. Though there are other factors that affect the housing market in the UK they are not as effective as the inflation and the interest rates. The

Macro And Micro Environment Issues In The Fragrances Market

838 words - 3 pages impositions. The fragrances market must be flexible and react accordingly to factors and issues within the macro and micro environment. While the fragrances market is currently robust due to the strength of luxury perfumes, future industry growth is unforeseeable due to the economic recession, consumer buying behaviour, supermarket fragrance launches and changes in government regulations. Marketers must evaluate all potential threats inside and outside of the perfume industry to compete and succeed in today’s marketplace. Works Cited Key Note. 2013. Cosmetics and Fragrances Market Report Plus 2013. 26th Edition. [report] pp. 1, 6, 15, 20, 90, 34, 100, 121-123.