UK Housing Prices Evolution
Housing is an unusual and important property in a family. Research shows that it has a direct effect on the welfare of individuals; it is a property that people tend to invest much on and to most of the homeowners, it serves as a measure of their wealth. Therefore, the effect of increased housing prices in the UK has brought about significant inequalities in different regions. Inflation in housing price is determined using house price index which is adjusted to measure the price of a fixed type of house over a specific period. It is used in the UK because it shows a consistent series over a very long period of time. Aims and objectives The research will be addressing the following objectives; 1.
To determine the different causes of housing volatility in the United Kingdom. To determine the appropriate approach of tackling price fluctuations in housing in the long run. To determine the appropriate approach of tackling price fluctuations in housing in the short run. To determine the most appropriate ways of protecting house owners from continued housing price fluctuations in the United Kingdom. According to figures indicated by the nationwide price index, “real average house prices trebled between 1995–96 and 2007–08” (Belfield, et al. 6), something that came as a recovery after a 40% fall during the 1990s. However, during 2007/08 FY, real housing price was higher by 77% compared to the 1989 peak value. The prices reduced by almost 25% from 2007/08 to 2012/13 financial years respectively before undergoing further inflation from the 2013/14 FY.
During the fourth quarter of the 2014 FY, housing prices were still 17% compared to their peak value in the third quarter of 2007 FY as indicated in the following diagram. Also, the decreased number of households and demand for rented houses will impose a lot of pressure to reduce housing prices because of reduced demand. During the Q2 of 2016 financial year, prices of houses in the UK increased dramatically, heightening the reaction of pro-Brexit voters against foreign people settling in the region. According to Tejvan Pettinger, “Given rapid rise in house prices since mid-1990s and corresponding rise in number of immigrants, it is hard to avoid the conclusion, levels of net migration are having, at least, some effect on exacerbating the UK housing crisis” (Pettinger n.
p) However, other scholars have proved that an increased number of immigrants can help in reducing housing prices in some areas because local people will be forced to look for houses in other places. Research by Rob Paral proved that there is very little connection between immigration presently and increased cost of housing at different levels county, regional and State. This study will involve a sample size of 400 people who will be selected randomly. Data collection The research will use data from both primary and secondary sources to help in determining trends in housing prices. The primary data will be collected with help of questionnaires that will contain both open-ended and close-ended survey questions. A pilot testing will be conducted to ensure accuracy and validity of the questionnaire before using it to collect data.
On the other hand, secondary data will be extracted from financial year reports on housing prices in the UK and other sources such as published reports, articles and journals. This study will address such uncertainties by showing how housing prices have been evolving in the United Kingdom. Research Limitation The study will focus on determining how housing prices have evolved in the UK and the possible reasons behind this trend. The study will focus on the larger UK regions which contain different States and it will be very difficult to touch on every one of them considering its wider geographical area. Further, it will focus only on housing prices without putting into consideration how this has an effect on the regional economy.
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