Future Housing Market of Uk
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1. Introduction:
Housing is a consumption good providing a flow of user services over a number of years. It can also be evaluated as a fix asset for everyone to have the opportunity to rent, buy or sell, a place they want to live and work for everyday life.
For most people, the purchase of a property is a highly infrequent activity. It is generally the most expensive purchase a person will make during their lifetime and therefore entails borrowing a large sum of money. The market for housing is intractably connected to the market of finance, where rates of interest play an important role.
Properties as well as being places to live are also seen as investments. Recently house prices have changed rapidly, performing better than equity markets. However, as recently as the beginning of the 1990s, the market witnessed falling prices with some house owners experiencing negative equity.
All these factors and others contribute to make the UK housing market a highly complex and unique entity.
2. UK Housing Market – The Basics
The housing market is like any other market of free market. Buyers and sellers who come together to agree a price for a transaction. In some respects that is where the similarity ends. Houses come in all shapes and sizes and represent the biggest single purchase most people will make in their lifetime.
It is also the place where we live and raise families