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    Demand and Supply Analysis for Housing Sector UK

    Brief :

    Assessment Questions

    Supply and demand analysis allows to investigate how the operation of markets, or sometimes the failure of markets.

    Task 1

    Through supply and demand analysis identify the factors in determining the price of private housing in the UK. Support your analysis with the use of supply and demand graphs.

    Task 2

    Explain the main government/ economic policies that can be used to enhance the demand for private housing in the UK.

    Assessment Criteria

    Understanding of the language of economics. Knowledge of the methodology and models used in this area and their application to real- world situations.

    Consider

    Factors need to be clearly identified. These could include:

    Interest rates

    Stamp duty

    House building

    The income effect

    Regional / local demand factors

    Population.

    This is not an exclusive list.

    Diagrams included. Demand to right / left and the effect on private house prices. Supply to right / left and the effect on private house prices.

    Task 2 assessment  criteria

    Understanding of the basic methodology and models used in this area and their application to real- world situations.

    Intellectual, practical effective and transferable skills. Achieved through the ability to analyse hypothetical and/or real world situations that occur in economics.

    Consider

    The main economic policies. These could include

    Interest rates

    Stamp duty,

    Right to buy schemes/ affordable home ownership schemes

    Planning permissions/ green belt land.

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