2. Assignment Topic: It has been estimated by the government that Britain will need an extra 4.5 million new homes in the next 25 years. Q1: Examine the possible reasons for this anticipated extra demand for houses. Use supply and demand analysis to illustrate how these factors will affect the British housing market. Q2: Analyze the costs and benefits likely to be associated with a regional buoyant housing market. What is the housing market? The housing market is …showed first 75 words of 1353 total…

…showed last 75 words of 1353 total…people with more expensive homes. This means that higher house prices, because they increase the transactions costs of moving, may be associated with reduced quitting and lower job mobility. My conclusion is that wherever demand and supply change, there will be gainers and losers. In this case, poorer or younger people are simply worse off with the rising housing demand, and from the emerging rising housing prices, while house owners and the construction industry benefit.