The progress of civilisation has been inextricably linked with the development of housing. The aspect of housing as a business venture has been there since time immemorial. Over the years, housing has evolved from being a necessity to a luxury statement with luxurious condominiums dotting the landscape. Housing industry has evolved from being a necessity to a burgeoning profit making business. The demand for quality housing has been on the rise with the proportionate increase in the disposable income. Access to easy finance in the form of cheap credit has transformed the housing sector into a booming industry with huge potential. Twenty first century housing industry consists of big organisations executing projects worth billions of dollars across the world. The study deals with the strategic issues faced by Wulvern Housing.
The recent financial crisis which began with the subprime crisis in US has engulfed the housing and real estate sector across the world. A research conducted by Knight Frank and Delloite shows a severe mismatch in the demand and supply dynamics of the real estate sector. The study shows that the supply of housing has hit rock bottom figures. The dip in supply could be attributed to the mortgage crisis and the subsequent credit crunch and recession that have significantly reduced the demand for new housing space. The financial turmoil has resulted in job losses among individuals which have in turn reduced the availability of finance for purchasing new homes. The scenario is the same for both US as well as the European markets (Delloite, 2010, p.4-5). The financial crisis has impacted almost all the sectors in UK’s economy. This crisis has also led to credit crunch which has severely affected the growth of an organization. Unavailability of credit has also affected the purchasing powers of the customers which has led to mismatch in demand and supply aspects. Such conditions have severely eroded the