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Demand and supply that affected UK house prices 1997-2010.
INTRODUCTION
This report will analyse the concepts of demand and supply on how it affected the UK house market prices
The house prices will be determined by demand and supply, In this case demand would be related to the AMOUNT of PROTENCHAL BUYERS willing to PAY THE PRICE TO BE COME A HOME OWNER AT WHAT EVER COST. Whereas WHEN IT COMES TO supply IT refers to “how much of a BARGIN YOU WILL GET FOR YOUR MONEY.
When there becomes a demand increase for houses, demand curve shift to the right, when supply stay the same shorges will occour which will lead to a highter equilibrium price. If demand decrese, then the demand curve shift to the left,,when.supply stay the same, a surplus of goods would be aviable at a cheper price., but if supply was to( change )increse then the curve would shift right and if the demand remain as it was before then there would be lower equilibrium prices. If demand remain the same and supply decrese then there wil be shift to the left. In enabling highter equilibrium price.

This essay has been submitted to us by a student in order to help you with your studies. This If demand on price housing in the uk.
Affordability is 1 of the main reasons, as house prices gos down,the demand in buying a property increases because when house price goes down people can then afford to buy more houses. David Begg “for a normal good, demand rises when income rises.” A positive income elasticity of demand is associated with normal goods and as a house is a normal good a rise in living standards will mean demand for houses will increase. This will be because people will be confident to buy a house as they will have enough income to pay for their mortgages. Low Interest rates creates a high demand in borrowing monies to purchase houses (a mortgage ). John Driffill(2000,pg 112)

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