Effect of credit crunch on property market in the UK

by

ACKNOWLEDGEMENT

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DECLARATION

I 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. I further declare that this work has not previously been presented in whole or part, for any other award, or published in whole or in part elsewhere, including this university. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

This report provides an evaluation of the consequences of the credit crunch for property in UK. It demonstrates that the credit crunch is having a comprehensive impact on investment, development and occupational markets and due to effect of credit crunch on the wider economy the result for property markets and commercial market is uncertain. With its heavy reliance on the financial and business service sector significant falls in transaction levels have already occurred in all the sectors of property markets i.e. office, residential and retail markets. Details regarding affordable housing provisions and commercial offices are gathered by conducting in-depth interview with the local land lords and estate agents hence providing the reasons behind the deterioration in UK property markets.

TABLE OF CONTENTS

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the Study1

Credit Crunch2

The Credit Squeeze5

Implications for Property6

Research Aims and Objectives7

Research Question8

Hypotheses8

Research Philosophy9

Research Approach9

Research Strategy9

Research Method and Model10

Variables and Measures10

Time scale10

Significance of the Study10

Purpose of the Study11

Scope of the Research12

Structure of the thesis13

Chapter I: Introduction13

Chapter II:Literature Review13

Chapter III: Methodology13

Chapter IV: Data analysis and Discussion14

Chapter V: conclusion15

Ethical Concerns15

Limitations and Suggestion for Future Research16

REFERENCES17

CHAPTER 1: INTRODUCTION

Background of the Study

"Credit Crunch" or "Credit Crisis" can be stated as a sudden financial distress where the whole economy of the country is affected. In other words "Credit Crunch" can be defined as the downfall of the availability of loans or hike in the interest rate on the loans given by the banks.

It is a situation where bank's won't or can't lend money. Investors also can't or won't buy debts. Suddenly it's very difficult to borrow money. There is a lack of easy money. Consumers and businesses have less to spend. There could be serious complications for an economy. Many questions regarding Credit Crunch arises as it can be heard every week, in the news channels, News paper or in the daily walks of life. Questions like. "What is Credit Crunch", "Since when did credit crunch come into existence", "How has credit crunch affected their economy", and “What ...