BUSINESS ECONOMICS

Level 4 - Coursework Assignment Business Economics

Level 4 - Coursework Assignment Business Economics

Introduction

UK real estate market has developed for a long time and is therefore a very traditional, "transparent" and predictable, which makes it less risky. At the same time, this market is very diverse and, therefore, not knowing the exact objectives pursued by the buyer, it is difficult to recommend anything specific. Below I will list the main objectives, which usually has an English buyer of real estate, and the main types of real estate, the most suitable for this purpose.

In Britain, unlike in Russia, in most cases, the owner of the house / apartment and the tenant is a completely different people. Owning real estate is not a vital necessity, as a separate business. Most people in the UK most of their lives in a rented accommodation. This gives them certain mobility and every time you change jobs, they move closer to their new office. Also, it saves them from having to look for a large sum for the purchase of homes at an early stage of their lives (Andre, 2004: 14). If the British and acquire property, it is usually the time when they finish their careers, retirement and accumulated over time career money to buy a house in a quiet and prestigious area. There they spend the amount of decorum, and the other half of his life, enjoying the views, breathing fresh air, playing with his grandchildren and indulging in some classic British entertainment.

The residential market in the UK sample (in May 2008) all signs of entering a recession significantly after a relatively long period of consistent increase of housing prices (from mid to late nineties). The association of largest builders of this country has been published at the end of May this year, the nominal annual rate of growth has fallen more than 4%. This is happening, ironically, while housing policy that has been placed on the top of the political agenda - as the government seeks to encourage a substantial increase in affordable housing supply and support regional economic policies. The emerging issues have been defined in part by the ramifications of the difficulties in global credit market - the collapse of Northern Rock bank, the need to provide substantial amounts of liquidity to credit markets and the nationalization, finally, the Northern Rock. In recent months, the fall in lending Interbank has reduced the range of products available and, as a byproduct, lending to social housing has ceased virtually. Personal wealth is heavily concentrated in home ownership and generated strong consumption added in the last 10 years has been fueled by the operation of the residential market. There are a wide concern about negative impacts on macroeconomics problems arising from residential and mortgage.

Discussion Analysis

A dramatic increase in demand created the housing bubble, as banks and other institutions lowered lending standards in an attempt to boost revenue. Banks increased lending activity by diversifying risk through secondary market transactions, including the packaging and sale ...