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An investigation into the causes of rising house prices in the UK.
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Economics coursework An investigation into the causes of rising house prices in the UK. By James Keane Contents Page Aim, Hypothesis and economic theory -3- House prices over the last 5 years -4- Real Income and its effect on the housing market -4- GDP and its effect on the housing market -4- & -5- The relationship between income and mortgage lending -5- & -6- Population and its effect on the housing market -6- Divorce and its effect on the housing market -6- Interest rates -7- Sale of council houses -8- Factors of Production -8- Conclusion -9- Bibliography -10- Aim: to discover why house prices have risen in recent years Hypothesis: I think that rising house prices inn the UK is mainly due to interest rates falling consistently. The forces of Supply and Demand determine the prices of houses. If there is a decrease in demand or an increase in supply, it will mean that prices will fall. If there is an increase in demand or a decrease in supply then the prices will rise. Price determination...
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