The Underlying Factors of the Property Crisis - A Matter of Valuation

By

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

This study is based on the property crisi, that started from U.S and the aftershocks were also seen in the UK of the sub-prime mortgage crisis have hit financial sector activity, so far particularly in structured credit and leveraged buy-out activity.

Problem: The problem of this study to understand the underlying factors of the property crisis in UK property market.

Objectives: Objectives of the study revolves around the influence of economic factors such as supply and demand upon the real estate sector and the worth of a 'sustainable' valuation standard.

Methodology: The methodology used for this research work is both qualitative and Quantitative.

Achievement: The equity markets have weakened and the general outlook for the financial services sector has deteriorated rapidly. Whilst there have been job cuts in banking and finance, the losses as yet have been fairly limited. The full impact of the credit crunch on property markets were felt through the inter-related effects that it is having on investment, development and occupational demand. The effects in the property investment market were among the first to appear and have alreadyresulted in sharp changes in investment activity and pricing. For carrying out thi research, study has focused on taking mixed methodolog. The impact on development had become more apparent going forward in the amount of new construction activity.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

1.1 Introduction1

1.2 Background of the Study1

1.3 Problem Statement2

1.4 Significance of the Research Study2

1.5 Conceptual and Theoretical Framework3

1.6 Research Aim and Hypothesis6

1.7 Research Objectives6

1.8 Rationale for the Research Area Chosen7

1.9 Limitation of the Research7

1.10 Summary8

CHAPTER 2: LITERATURE REVIEW9

2.1 Introduction9

2.2 Background of the Study9

2.3 Pre-Crunch Market Drivers11

2.4 The Credit Crunch14

2.5 Role of Factors Affecting the Value of Property16

2.5.1 Socio-Economic Factors Affecting the Value of the Property Income Growth16

2.5.2 State of the Economy16

2.5.3 Labour Migration and Cultural17

2.5.4 The Development of Credit - The Introduction of Government Programs to Provide Soft Loans18

2.5.5 Lack of alternative areas of profitable and reliable placement of free funds Distrust of the currencies18

2.5.6 Changing the Status of the Neighborhood19

2.5.7 The Low Volume of Construction Focusing On the Construction of Multi-Room Spacious Apartment20

2.5.8 Political and Psychological Factors That Affect the Value of the Property21

2.5.9 Positive Factors21

2.5.10 Negative Factors22

2.6 Main Factors that Caused the Investment Crisis22

2.7 Impact of Credit Crunch on Property23

2.8 The role of the U.S24

2.9 Summary26

CHAPTER 3: METHODOLOGY27

3.1 Introduction27

3.2 Research Method27

3.3 Research Design28

3.4 Mixed Research28

3.5 Design and Appropriateness of the Instrument29

3.6 Data Collection30

3.7 Pilot Study30

3.8 Research Sample31

3.9 Data analysis31

3.10 Ethical Issues31

3.11 Summary31

CHAPTER 4: FINDINGS AND ANALYSIS32

4.1 Introduction32

4.2 ...