Question

In: Economics

How would you explain the high prices in the current UK Housing market? If you were...

How would you explain the high prices in the current UK Housing market? If you were in the real estate/property management business, how would you protect your bottom line?

Solutions

Expert Solution

1.reasons for high prices in the current UK housing market.

due to pandemic, every country faced problems such as lockdown and due to that reduction in production, demand, supply and as a result many people lost their jobs. this whole phenomenan lead to reduction of demand in almost every sector. when demand for something reduces, its price declined but the situation reversed in fast few months as people begin to search for new houses further from city and town centers after lockdown. people realise due tp pandemics that they can work from home and they want a home far from city with large gardens, clean air and to have a office at home.

due to pandemics many business or shops closed down so the rents went up.

2. AS A DEALER IN REALE STATE BUSINESS WHAT I CAN DO TO PROTECT MY BOTTOM LINE:

- Making available mortgage at a lower cost for small investers.

- offer them loans at a low interest rate.

the main issue is of the price of houses so all we can do is to offer them to pay in installment on easier terms or make them available loans.


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