ECONOMIC ANALYSIS

Economic Analysis

[Name of the Institute]Economics Analysis

Question # 1

Introduction

The housing market in the United Kingdom has experienced an unrelenting boom and the bust cycle for the last forty years. These cycles had deformed choices of housing and had increased the risk. The mortgage arrears and the recovery rate have been driven, with limited capacity of the housing building and also increased the inequality in the generation. The policy makers have done a little in order to tackle the problem.

Market Size

The size of an ownership has been declined in the housing sector since 2005 for the first time in the century. If this will happen continuously then it is estimated that by the year 2020 there will be twenty percentages of the households will be the private renters and by 2013 it is estimated that private rented sectors outgrowing (Malpezzi,2001) social housing. This would be the turning point in the history in the structure of housing system of United Kingdom that will have a significant impact on the social and economic consequence.

Change in Tenure

Over the last century there have been the major transfers in the comparative size of various occupancies. It is shown that the vast majority have been found that they live in the private rented sectors. However the private sector has been declined from the seventy five percentages of the households in the year 1918 to the low which is the less than ten percent in the early 1990's.

This excellent and marvelous decline has contradicted with the increase in both the terms, the occupation of the owners and the social renting. The occupation of the owner have become the prominent and the dominant term in the England that was being increased from the twenty three percent from 1918 to the seventy percent till the ending periods of twentieth century. With the increase in the ratio of the households who were the social occupants or the social renters from just one percent in the year 1918 to the thirty percent in the early 1980's.

Housing Prices

The prices of houses and the cost of the mortgages should be faster. There are many landlords that have concerned on the capital growth and the investment. It was much more than the return on the income as the prices of the houses (Sutton,1995) were increasing rapidly, though the in the coming time the capital will increases that is being much less convinced. Yields will be pressed further as the small landlords usually use their own time in order to manage the properties but the investors of the institution have to pay the property management.

Comparison with Scotland

Majority of the peoples in the Scotland anticipate that the prices of housing will rise that will fall over the next period for at least twelve months according to the Bank of the Scotland Housing Market Confidence tracker.

Approximately twenty nine percent of the forecast that the prices of housing will rise over the next year on the other hand the twenty five percent anticipate that the prices of the ...