Trading Economics (The rising housing pricing in London)

Topic

Trading Economics (The rising housing pricing in London)

Instructions

Words: 2500 (maximum 2700)

References: 19 minimum (Harvard). Try to use references from Lecture notes.

Deadline:  6 November 2017, 6pm UK Time.

Answer Preview 

This paper investigates the rising housing pricing in London, possible determinants of the increase and the related social and economic implication. From a theoretical perspective, the paper establishes that the housing market in London is influenced by different factors of demand and supply; these elements then determine how people buy, sell or rent houses. Aspects of own price of elasticity of demand, cross elasticity and income elasticity demonstrates how change in quantity of houses demanded against the percentage change in housing prices. This paper suggests that in order to ensure that housing prices are at equilibrium, and that Londoners’ demand is met with increase in supplies, policy makers should ensure that housing system reverse the deteriorating social housing, alleviate the challenges faced by middle income home buyers, and improve house affordability in the rental housing market.

Word Count: 3300