London's Booming Property Market and its Stakeholders

By

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

In this research study the London property market's booming trends are being discussed and the booming trend of its stakeholders are also being discussed. In this research study, the influence of individual investors and residential buyers on the property market of London has been described and analyzed. The mixed methodology method has been used, the secondary and primary both methods of research has been used in this research study. Interviews from the London real estate owners are being taken. Questionnaire has been used as the instrument.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

London Property Market1

Stakeholders of Property market2

Individual Investors and Residential Buyers2

Aims and Objectives3

Significance3

Research Questions4

H 14

H 24

Limitation of Research4

Ethical Considerations5

CHAPTER 2: LITERATURE REVIEW6

Property Market Trend8

Current Trend of Rental Market8

Legal aspects of purchasing Property9

Investment in Real Estate10

Real Estate Economics12

Theory of Real Estate Markets13

Flow of Services, Rent, and Price13

Reasons for Property Market Boom14

Real Estate Activities15

Problems in the London market17

Property prices in London and Moscow18

London Real Estate Boost20

International investors dare to enter20

Internet and Real Estate Market21

The housing crisis hit London24

Leading Companies in London25

British Land Company plc25

Land Securities plc25

Liberty International plc26

The London housing market premium26

The Duties of Mortgage Lenders27

Mortgage Loans in London27

Economy of London28

Bad Credit Loan in London28

The Council of Mortgage Lenders29

Stake holders29

Buyers29

Suppliers/ Estate Agencies30

Bargaining Power30

Pressure towards the industry (represented on horizontal axis)31

Buyers31

Suppliers31

Pressure towards buyers and suppliers (represented on vertical axis)31

Buyers31

Suppliers31

Future Outlook32

CHAPTER 3: METHODOLOGY34

Research Design34

Literature Search38

Instrument Design38

Participants38

Pilot Questionnaire39

Reliability of sources39

REFERENCES41

APPENDIX44

CHAPTER 1: INTRODUCTION

London Property Market

According to the experts, the international buyers have activated the property market of London; the outlook of the market is strong enough. From 2000 to 2010, the activities of the UK real estate have been grown at the average growth rate 6%. This increasing trend is because of the increasing demand of the real estate services and housing. In 2010, this market has been reached 199 billion and this market is expanded by 76% during the period 2000-2010. The major buyer in this market is mainly households; the households have the dominant market share of around 70% during the past years (Sualrez, 2009, 90). The household spending has risen by 6% annually; this figure is an average of the preceding years. This rising trend of household is because of the higher lending rate and the rapid increasing the real estate property value.

In London, the local real estate service providers' turnover has been increased since 200 by 85%. The UK sector of letting own property remains to be the primary source of income for the industry, containing 68% of the local earnings in 2010, and having grown by 65% since ...