[World economic crisis effects on the Real Estate market in UK]

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Contents

1. Brief Introduction3

1.1 Aims and Objectives3

1.2 Background and History3

2. Research Problems and Debate4

2.1 Problem Statement4

2.2 Research Question5

4. Review of Chosen Literature with Critical Argument:5

The Credit Crunch6

The Credit Crunch and Property6

The Credit Crunch and Property Investment7

The Credit Crunch and Property Development8

5. Methodology8

5.1 Questionnaire9

5.2 Interviews10

5.3 Observations10

6. Summarised Conclusion11

References13

World economic crisis effects on the Real Estate market in UK

Brief Introduction

The purpose of this report is to provide an assessment of the implications and consequences of the credit crunch for property in UK. In this initial section, we set out a framework for examining the impact of the credit crunch on the property market and the different channels through which impacts occur. Firstly, to set this in context and consider how the credit crunch has and will affect market drivers, we review briefly recent trends in the UK property market before the credit market crisis unfolded.

Aims and Objectives

In order to achieve this, the following objectives will be addressed:

Research will be used to determine the impact of the credit crunch on the housing development industry

Research will be used to determine the operational and accounting impact of the credit crunch on housing development industry

Research will be used to determine the potential for the credit crunch to open up new financial opportunities for housing development industry

1.2 Background and History

The crisis in the UK, generated by mortgages that were granted customers with low creditworthiness and poor economic monitoring system financially by the authorities, coupled with the oversupply in the sector housing caused a drop in their price, caused a deep downturn in the real economy in that country moving to the rest of the economies the world. According to recent reports from the International Monetary Fund and World Bank World has generated a general distrust international arena, has stopped consumption and investment decisions and a setback macroeconomic, threatening stability and creating jobs in economies around the world. This situation has pushed governments to various measures instrument means of reviving the economy, bailouts, tax breaks, spending targeted public, more aggressive trade policies and adjustments regulations, among others.

It is in this context and relevance, which this time presents an analysis of the construction industry of housing in UK, considered one of the economic sectors as drivers of the economy through its effects multipliers and government policies that have been implemented with to reactivate. Housing construction is considered an activity of prime importance for national development for several reasons. In economic terms, because recognizing their impact on investment, production and employment, and on levels of household welfare. And in political terms because, firstly, it has led to the design and implementation of specific policies that have strengthened and legitimized government action, especially since 1983 the right to housing has been elevated to constitutional status. The development of a housing supply that meets the present need and future of society is, first, macroeconomic conditions resources to multiply investment and financing, facilitating access to credit, and create pricing options more accessible to ...