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    Demand and Supply Analysis for Housing Sector UK

    University: Anglia Ruskin University London

    • Unit No: 4
    • Level: Undergraduate/College
    • Pages: 12 / Words 3009
    • Paper Type: Assignment
    • Course Code: ECON8069
    • Downloads: 2002
    Question :

    Some of the main assessment questions needed to be answered are like - 

    1. What are the ways of using the supply and demand and also analyse and identify different factors in relation to determining the prices of private housing in UK.
    2. Elaborate the different economic policies which are used to stimulate all the demand in the general private housing.
    Answer :

    INTRODUCTION

    Business economics is the applications of various theories in the microeconomics which help the organizations to fill their gaps which occur due to current business practices. With the help of business economics, management able to make rational or optimal business decisions which helps them to analyse overall market as well as factor which impact the organizations. Business economics linked with various economic theories which further beneficial at the time of implementation and make decisions accordingly (Demil and et.al., 2015). This report focus on private housing sector of UK and identify the factors which drive the demand as well as supply of housing. Number of households will increases from 2007 to 2017 around 1.7 million which is about 63% increase (Private Housing in the UK, 2019). This report cover various topic such as analysis of demand and supply, how it will increase the understanding of market operations. Along with this, identify the factors which determining the price of private housing in the UK. In addition, it include the economic policies which used to stimulate the demand of private housing in the UK.                    

    MAIN BODY

    Economic for business help the organization to make wider decisions in respect of the private housing. With the help of it, business able to develop strategic decisions which maximise the sales as well as profitability of the company (Drăgan, Ivana and Arba, 2014). In context of private housing in the UK, builders have to analyse the statistical data, market condition, interest rate, construction cost, stamp duty, income effect, population etc. Construction industry need to evaluate the market condition of the housing sector where demand and supply analysis will provide them better understating.

    TASK 1

    1. By using demand & supply analysis, identify the factors which determine the price of private housing in the UK

    Law of Demand:

    It is refer to the behaviour of customers regarding any goods & services at the time of purchasing. According to this law, price or quantity of goods both are constant which have inverse relationship. Rather than these factors all are constant in the short run but in long run all are affect the demand of goods & supply. In context of privet housing, when price of housing increases then demand of properties also decreases and vice versa (Demand of private housing, 2019). Below mention graph provide better understanding of private housing demand in the UK.    

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