UK Housing Prices

UK Housing Prices

Introduction

The housing industry in the United Kingdom has seen a number of challenges and the authorities have made sure that they help the industry in coping with the crisis, it is facing. The government has taken steps that has helped the industry to grow and has also helped in expanding the economy. The housing prices in the country have fluctuated and many people have lost huge amounts in the financial crunch. People have lost trust and interest in investing in the housing sector and many investors have withdrawn their investments. This caused a huge setback to the industry, thus the government had to take steps to improve the situation of the industry (Goodchild, 2008, pp. 35). With a number of policies in place and by implementing them, the country has seen improvement in the housing sector and has also succeeded in bringing the sector back on track. This paper will discuss the average prices of four regions of the country and the reasons as to why they differ. In addition to this, theories related to construction economics will also be discussed.

Discussion

The housing data of the four regions is presented below:

UK House Price Data

London

Month

Average price (£)

Jan-00

161,136

Jan-01

182,348

Jan-02

208,104

Jan-03

249,915

Jan-04

259,233

Jan-05

273,642

Jan-06

279,629

Jan-07

314,008

Jan-08

350,864

Jan-09

300,578

Jan-10

331,568

Jan-11

339,949

Jan-12

348,312

Portsmouth

Month

Average price (£)

Jan-00

71,522

Jan-01

81,888

Jan-02

94,742

Jan-03

119,421

Jan-04

132,348

Jan-05

144,440

Jan-06

145,699

Jan-07

153,795

Jan-08

160,752

Jan-09

136,594

Jan-10

141,692

Jan-11

139,788

Jan-12

139,944

Jan-13

141,222

Cardiff

Month

Average price (£)

Jan-00

69,718

Jan-01

76,219

Jan-02

85,814

Jan-03

108,698

Jan-04

125,519

Jan-05

148,512

Jan-06

147,489

Jan-07

154,395

Jan-08

158,683

Jan-09

141,169

Jan-10

141,469

Jan-11

139,431

Jan-12

141,119

Edinburg

Month

Average price (£)

Jan-00

97567

Jan-01

109249

Jan-02

117797

Jan-03

127044

Jan-04

134989

Jan-05

141952

Jan-06

152837

Jan-07

160387

Jan-08

168887

Jan-09

176634

Jan-10

188498

Jan-11

198854

Jan-12

207281

House Prices Difference between Different Regions in the UK

According to the production theory and construction economics, there are a number of reasons that can justify the difference in the housing prices of the regions. The first aspect identified by the economists is the incentive that is provided to the people who are working in the construction industry and who help the industry to grow and expand. They should be provided with the right incentive so that they can work in a manner in which the industry will benefit and will also help the people of the country. This will not only help them in improving their productivity, but will also make sure that the economy of the region improves.

The technological processes defined in the production theory, is another example of how people can implement the same in the construction of buildings (Englund, 2002, pp. 169). There are technological constraints that cause the regions to reduce the construction processes. There are a number of hindrances that the authorities of the region have to face and suffer. They are the ones who have to make sure that proper implementation of technology is done in the region so that they can work in the most efficient manner. When differences like these occur in the technological process, there are chances that the prices of the housing differ in the different regions. The theory of construction is a better way of finding out the difference in the housing prices.

There are a number of reasons as to why the housing prices differ in each of the region mentioned above. One of the reasons is the difference in the rules and regulations of every region. The related authorities have outlined different regulations related to the housing sector. This change in regulations has caused ...