Impact of Personal Finance on UK Housing Market Essay

Impact of Personal Finance on UK Housing Market - Essay Example The measurement concept is vital in understanding the future prospects of the housing market because it provides a rough estimate of the income and the disposable income of the household and the tenants. In UK, the residual income concept is used for estimating the monthly disposable income, after the payment of the monthly mortgage system. The affordability factor is largely triggered by the average income of the household individuals and tenant owners by computing ratio. However, huge crisis was seen in both the household and rental category during 1999 to 2003 due to factors like low income of the individuals, legal inability to purchase the housing property, instability in the tenure of security ownership and also the highly geared financial exposure caused by the price variations. Therefore, it is observed that the UK housing prices was largely affected by the hike in the customer prices and the household incomes (Macgregor, Lizieri and Ball, 2008).The UK housing price grew by 4 7 percent, consumer price by 12 percent and household sector by 33 percent during the tenure 1996 to 2003 (Macgregor, Lizieri and Ball, 2008). The high income elasticity of the individuals with respect to the increase in the price valuation of the household property is responsible for the growth in housing market. The level of mortgage debts on the household balance sheet which is relative to the disposable income of the consumers is also a major factor for the development in the housing market (Poon and Garratt, 2012). During the tenure 2000 to 2003, the growth in the housing market depicted variability and stability in the varying rates of the price... This report stresses that in UK, the procurement of the housing facility is largely facilitated by the financial risk and the structural pattern of the housing market. Apart from the traditional banks, UK housing market is financed largely by the large amount of investors from other countries. The requirements for the strong growth in the UK housing market were largely dependent on the pricing of the residential and non-residential property. The UK housing market then consisted of submarkets and the quantitative analysis was the most common method to determine the market issues and segmentation. The UK housing market consists of owner, rental and industrial owners and the affordability concept is measured through econometric concept. This essay makes a conclusion that the housing scheme not only helped in decreasing the housing prices but also increased the repossession in the rental property land. The decrease was also due to the fact that the lenders were asked to pay only the capital sum at the end of the repayment term and tenure. The government has also increased the process of facilitation of the housing loans which have increased and doubled up to 15 percent in the last tenure. It is also observed form the graph that the government’s mortgage guarantee scheme of  £12 billion helped in stoking the bubble to a large extent. With the emergence of the Household Guarantee scheme proposed by the UK government, an increase in the supply of the individual and rental property was witnessed in the following areas.

SOCIOLOGY Essay Example | Topics and Well Written Essays - 250 words

SOCIOLOGY - Essay Example Life is much more convenient as compared to the earlier eras, where only a few could afford telephones and could communicate but today cell phones are part of life and it has made an individual approachable. Although television has set the platform for all sorts of information required for different aspects of life but I disagree in the sense that it is also deteriorating the cultural norms of the society as there are certain unacceptable scenes that are forbidden for family shows. Giving it a different view point that if there is an introduction of discipline in home regarding timings to watch television, there could be enough time for the family interaction may it be the topic of personal development or creating awareness about the happenings around the world. This will preserve the decline of cultural values too. "Yes, I agree that internet services across the world has made the accessibility of documents within a few seconds and offers a platform for interaction amongst individua ls across the globe, but at the same time it is making children to access those sites which are prohibited for them". It is therefore imperative to understand Globalization from different perspective, where a deep understanding about globalization is desired. An individual must understand it in a highly disciplined manner.