HOUSING

Housing Boom and Bust

Housing Boom and Bust

Introduction

The UK housing comprises of privately owned, privately rented, locally influenced houses and apartments and property supervised by housing associations. Out of these; privately owned occupies 65.47%, privately rented occupies 16.51%, locally influence occupies 8.51% and housing association occupies 9.5%. In this report, we would specifically focus on private sector housing provision, its role, significance, role of government in housing, its understanding as political process task, causes of the boom and bust, its connection with broader economic, financial and political issues and the impact of the financial crisis on future social housing provision (http://economicsonline.co.uk). Housing policy was recognised and improved after the Second World War. But, in recent time many changes have come into view and that have strained closely to welfare state services and modernization of public services (Malpass, P. 2005) (Adair, 2009,, 24).

Role of private sector housing

Private sector housing plays a valuable and helping role in meeting housing requirements in the whole country (http://www.herefordshire.gov.uk). It provides home for those people who don't have right to use social housing or owner occupation. The workings of local authorities with private Landlords have taken these initiatives; Landlords meetings, Social leasing organisations, Licensing “houses in multiple occupation (Home's)” and using legal powers to force landlords to improve standards, when required (http://www.wlga.gov.uk) (Adair, 2009,, 24).

Example: “Herefordshire Council” in UK has also recognised private sector housing by working with private landlords and representatives to support and persuade provision of good quality accommodation (http://www.herefordshire.gov.uk) (King, 2010,, 95).

Significance of private sector housing

Local authorities have a legal function to fulfil the housing requirements of their region. Consequently, all divisions of housing are really important, specifically the private sector, which gives 83% of homes in Wales. The private sector consists of owner occupied homes (73%) and the private rented sector (10%) (King, 2010,, 95).

Privately owned homes:

In the recent years, level of owner occupation has increased gradually, however ownership of housing boon home has become unaffordable and unsustainable. Therefore, Local authorities play an important role in increasing the contribution of affordable private homes and are also persuading more flexible housing market to provide a range of midway choice between ownership and renting in the future. So that, people can accommodates themselves according to their housing requirements, standards and ability to afford the same (http://www.wlga.gov.uk).

Privately Rented Homes:

The private rented division is comparatively smaller than that of privately owned sector. It provides homes for those individuals, who are employed and salaried person. Therefore, it also plays a vital role to assist this class of people. Local authorities are also engaged with private Landlords to increase the number of good quality and affordable rented homes (http://www.wlga.gov.uk) (Adair, 2009,, 24).

Continuing with the example of “Herefordshire council”, it accounts for more than 80,300 properties providing accommodation for 178,000 people. This situation and its use are of great significance for the lifestyle and welfare of their inhabitants and to the ocular emergence and financial wealth of the country (http://www.herefordshire.gov.uk) (Adair, 2009,, 24).

Discussion:

The Role of Government in Housing

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