The state of the real estate market in UK Essay

The state of the substantive estate market in UK - Essay fountThis essay discusses that in the UK, the cost of paying rent went high. With this, demand for rental houses also escalated. A enormous percentage of investors joined in the real estate seam with the expectation that they will amass a lot of profits from the business. The amount of rent went high at an alarming rate with the number of investors increasing. Baum & Hartzell destine that the amount of supply for real estate as at 2010 was very low. On the other hand, CML indicates that in the year 2010, the real estate business was booming and was very juicy at that time of the season. fit in to business analysts, this kind of scenario is referred to as a profitable mix, an inclusion of both demand and niche in the supply. In relation to the failure of the real estate business, this concept has a great correlation with the profit in the need to create a supply chain for the increase in demand by the tenants. With the r ent yielding a lot of profits, the market experienced an influx of entrepreneurs in the business of real estate markets. With time, the real estate became flooded with a lot of people claiming a piece of the market. At whizz point in the businesses, a good number of entrepreneurs were wiped out of business. This led to a decrease in the number of investors in the business due to the tough competition. At the end of 2010, the business face up a lot of challenges and was not considered profitable at all. This is a major indicator of the reasons the real business declined. 2.2. High building rates Despite the increase in population in UK and the number of involuntary investors in the real estate business, the building rates still remain high. The international standards, according to FSA (2009), did not meet the booming prices in the limit of 2010, since the building regulations were extremely high. On the other hand, the population in UK was rising at a high rate thus, alteration in the household sizes. Just comparable indicated earlier, it is the need to fulfill the demands of the market that led to an increase in the supply of the real estates. However, in the period of 2010, less people invested in the business during the economic recess. The returns from the business were extremely high to an extent, that the government save a deficit in the number of houses thus, researchers and made a recommendation through the Town formulation Council that over 200,000 houses must be built so as to cover the increase in population. Donald & Mc Millen (2010) indicate that by the end of 2010, the real estate had recorded a deficit of around one million houses, a clear indication of the fact that investors had backed out for a more profitable business. On another angle, the amount of credit offered to the real estate businesses decreased to a great extent, variation many businessmen with no other option but to get out of the market. With this in mind, salient Brita in H.M. Treasury (2010)