The Economic Impact Of The UK Government Monetary Policy On The Supply Of Affordable Housing

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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 recent years, the UK economy has been through turmoil, firstly with the credit crunch by the banks, mortgage lending to purchase properties and the advent of the recession, has impacted significant challenge on the government to increase, stimulate and finance to housing supply against the backdrop of spending cut which is on the verge of creating an imbalance to meet government housing supply targets. In this study we try to explore the concept of supply of affordable housing in a holistic context. The main focus of the research is on the economic impact and its relation with UK government monetary policy on the supply of affordable housing. The research also analyzes many aspects of supply of affordable housing and tries to gauge its effect on UK government monetary policy. The government impact assessment to meet targets of affordable housing possesses a threat to economic growth, poverty, displacement, deprivation, unemployment and wealth inequalities. Demand for housing is increasing over time, driven primarily by demographic trends and rising incomes. Yet in 2001 the construction of new houses in the UK fell to its lowest level since the Second World War. Over the ten years to 2002, output of new homes was 121/ 2 per cent lower than for the previous ten years. This Review is concerned with the issues both of volatility and of long-run supply. Finally the research describes various factors which are responsible for supply of affordable housing and tries to describe the overall effect of UK government monetary policy on the supply of affordable Housing.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the study1

Problem Statement3

Research Aims and Objectives3

Significance of the Study4

Rationale of the study5

CHAPTER 2: LITERATURE REVIEW8

CHAPTER 3: METHODOLOGY40

Research Design40

Literature Search41

Keywords41

CHAPTER 4: DISCUSSION42

CHAPTER 5: CONCLUSION48

Recommendations53

Refkections…………………………………………………………………………………………...54

REFERENCES57

CHAPTER 1: INTRODUCTION

Background of the study

After three decades of high-volume house-building in the wake of the second world war, during which time politicians of all parties competed over how many houses they could build, it has since followed a downward trend. The trajectory of house-building immediately before the recent recession was positive, but still insufficient, and with the crash it dropped sharply. Since the 1980s, local authority house-building has been negligible, and the private sector, which has delivered consistently low output throughout successive booms and slumps, has not made up the shortfall. Affordable housing provision has been left almost entirely to housing associations. Indeed, until the Right to Buy, introduced in 1980, began to run out of steam in the mid-2000s, there had actually been ...