Answer to Question #75643 in Microeconomics for teddy

Question

Investigate and discuss the main determinants that affect the level of housing supply in the UK housing market

Answer 1

The main determinants that affect the level of housing supply in the UK housing market are:
• Profitability. It depends on demand for houses and prices. Decreasing house prices can result in a limited supply.
• The number of new houses. The building peak was in the late 1960s with more than 420,000 built per year. Now it is less than 140,000 (less than demanded).
• People are against. The locals prefer living in smaller villages without increased congestion.
• Limited land. In the UK they are planning restrictions and limitations on building on green-belt land.