UK HOUSING MARKET

UK housing market

UK housing market

Question 1(a)

There was a huge increase in the price of homes in the past decade, this q thanked it was very easy to get credit and house prices almost tripled. Now in England for people with an average wage it is very difficult to buy a house.

In 1995 the median home price in the UK was £ 63.514 but by 2008 had reached £ 217.136. Now is estimated to be £ 205.372 indicating that prices have fallen. All properties show prices in March 2009.

Of course the "average price" does not say much pursue there are many types of property for sale and there are differences between different regions of the country. South-east England, a densely populated area around London to the south coast and is generally higher prices.

The party ended and now many people have a hangover! For a young couple who want to buy a home may be required to deposit 25% of property value, some reports say the average deposit is £ 40,000 in cash, which is almost impossible to save the average salary the UK is £ 24.0000. And even if the two people in the couple both work and earn the average wage, would have to spend almost all the money they earn to pay the mortgage. There has also been an increase in fuel prices (the heating is very important in a cold country) and also the price of food has increased.

For many years the mortgage payment was less than or equal to the cost of renting a home what to buy a house that looks quite attractive, especially as a long-term investment. Now with the average monthly fee of £ 572 and the deposits are almost unattainable, renting seems to be more realistic. The monthly average price of renting a two bedroom house is £ 600.

Question 1(b)

To defend the priority policies of the offer, the partisans of this choice is usually the point that in France, demand is already sufficiently dynamic and therefore has no need to be supported. This is only partly true. Between 2000 and 2006, domestic demand has certainly increased from 12.5% ??in France, while it only increased by 9.8% on average in the euro area. Domestic demand in Germany (+0.4%) and Italy (+6.6%) were in particular much less sustained than in France. But domestic demand was British, she increased by 18.3% over the same period, U.S. demand of 18.2%. Almost 50% higher than ours, and we do not pretend that this is only the result of supply policies pursued by the governments of these countries! Instead, they supported the request for a much more proactive than in continental Europe.

In the United Kingdom, Tony Blair did not hesitate to increase, to a significant degree, public funding for health, education and transport: the British public spending, which weighed only 36.8% of Gross Domestic Product (GDP) in 1999, accounted for 40.2% last year, more than 3.3 percentage points of GDP in seven years, or 250 billion euros in ...