Construction Economics Assignment - Essay Example

Only on StudentShare

Extract of sample
Construction Economics Assignment

Many people took out very large mortgages. In 1983, the average new mortgage was approximately 2.1 times annual average earnings. By 1989 this had risen to 3.4 times annual average earnings.
House prices were rising uncontrollably and bringing considerable inflationary pressures to bear within the economy. As a result, the government increased rates and reduced government assistance to home ownership. The impact of these measures plus a worsening economic environment drove house prices down and the housing market into a state of recession (Williams and Holmans, 1996).
In mid 1989 house prices started a downward trend for the next six years, falling by 12 per cent, before reaching a trough in July 1995.In the years 1990 - 1995 house prices fell by around 12.2%. Many people found themselves in a position of having negative equity on their property because the value of the mortgage now exceeded the property value. This meant many people were unable to move house without taking a loss.
Then, in 1996, house prices began to rise again. The UK housing market started to recover with a 7 per cent increase in prices. The low interest rates enjoyed by UK homeowners have reduced mortgage payments as a proportion of gross earnings for the average purchaser from 22 per cent to just 15 per cent. ...
Download paper

Summary

The diagram below shows what happened to average house prices in the UK in the period 1983 - 2002. Initially prices went up rapidly until 1989. House prices recorded a growth of 7 percent in the year 1983 alone. House price inflation reached a peak of 34 percent in October 1988, when average house prices rose by 23.3% in one year alone…
Author : virginia40

Related Essays

Construction
Because of their malleability and relative ease of working, copper and lead became synonymous with the complexities of Gothic architecture. Endowed with the rich green patina of age, weathered copper spires and roofs still enliven the skylines of northern European cities. Improved techniques of pre-patination can now bestow an instant, uniform illusion of maturity; Jean Nouvel's new cultural centre in Lucerne (p38) is crowned by a vast, overhanging roof clad in sheets of prepatinated copper. Sheltering a new urban square in its oversailing embrace, the emerald green structure forms a powerful...
6 pages (1506 words) Essay
Purpose of this assignment
Integrated Marketing Communications (IMC) brings about synergy and better use of communication funds and Balancing the 'push' and 'pull' strategies Improves the company's ability to reach the right consumer at the right place at the right time with the right message. There is also a lot more to developing and implementing a successful Integrated Marketing Communications (IMC) program. This assignment will focus on the rapidly evolving field of integrated marketing communications. The assignment will examine the evolving role of IMC, how it differs from traditional advertising and promotion,...
11 pages (2761 words) Essay
Economics Assignment
Based on the fact that within the market place the root of everything litereally comes down to supply and demand, this is altered by monopolistic practices and therefore society tends to disfavor monopolies as practicing on an unfair basis, and creating barriers of entry to firms wishing to enter the market for profit generation, as well as from the perspective of the consumer, being that the monopoly is unfairly regulating prices, by restricting output and therefore is extracting a price without allowing market forces to determine the correct supply and demand balance of the given commodity....
9 pages (2259 words) Essay
Bank Annual Report Assignment - Economics
Other mining activities accounted for ASD 0.83 billions forming 0.22% of the total GDP.Thus taking the contribution of mining industries to 32.78 %( Annual 2004)....
2 pages (502 words) Essay
Construction Economics
Vegetables, for example is a homogeneous product while soap is not. Because the consumer will not care who supplies the product, there is tougher competition among suppliers....
12 pages (3012 words) Essay
Construction Economics
The economic policy of a government is generally reflected in its national budget (Jenkins 1978). Partly, it is through the budget that the government exercises its three principal methods of establishing control: the stabilization function, the allocative function and the distributive function. In some cases, economic policies are usually influenced by international institutions such as the World Bank or International Monetary Fund as well as policies of political parties and their beliefs....
8 pages (2008 words) Assignment
Got a tricky question? Receive an answer from students like you! Try us!