The impact this will have on businesses is quite significant. For example, estate agents will have difficulty selling houses, and while there is still high competition within the market, it will be hard to sell properties. Carpet and floor fitters say that a buoyant market means more trade and, after a post-recession slump, things have started to pick up. They say that movers are spending more money on instant refurbishments and stayers are trading up on the quality of their carpets.
It will also impact consumers. Firstly, it will be good for first time buyers, as the prices will be low and when the time comes for a property to be sold they could potentially make a substantial amount of profit. However, it would be very difficult in today’s market to sell a house and make a profit, especially if it was bought 10 years ago.
The housing industry is such an important measure of our economy, as if house prices were to rise then this would show that there is more money in the economy for people to spend a higher amount of their money on assets. This will then encourage international investments further boosting our economy.
By Nathan Williams, Rhys Strawbridge and Matthew Davies, Year 12