Investigate the Factors that Determine the Housing Market in the UK_ Research Proposal (GC01461)

Table of Contents

INTRODUCTION.

1.1 Research Background.

1.2 Draft Research Aim.

1.3 Draft Research Questions/Hypotheses.

1.4 Draft Research Objectives.

1.5 Feasibility of the Study.

2.0 LITERATURE REVIEW.

2.1 Housing Cycle.

2.2 Financial Determinants.

2.3 Behavioural Economic.

RESEARCH METHODOLOGY..

Introduction.

Research philosophy.

Research Design.

3.3 Research approach.

3.4 Data sources.

3.5 Data collection methods.

3.6 Sampling Method.

3.7 Accessibility issues.

3.8 Ethical considerations.

3.9 Data analysis plan.

3.10 Research limitations.

4.0 Time periods for completing the proposed research work.

4.1 Research timeframe.

Conclusion.

Reference.

INTRODUCTION

1.0 Introduction

As the global environment is still trying to recover from the last global financial crisis in 2007 which brought about a dramatic downturn in the housing and financial market across the world, followed by fiscal problems that are yet to be resolved across the globe; Housing is still regarded one of the basic needs for man which has been recognised as an essential part of the infrastructure of an economy (Jones, White and Dunse, 2012). As the UK Housing Market has been faced with a lot of incessant challenges for the past 2 decades as a result of the increase in house price inflation and decrease in house price-earnings prior to the pre-crisis level; and post-crisis level (ONS, 2016); Hilber and Vermeulen (2016) stated that the rate of increase in real house price in the UK is the highest amongst OECD countries have led to house affordability crisis and house price volatility in the UK market; where younger households are affected to get a hold on with the pace of owner-occupied and also, existing owners struggling to keep pace with housing consumption and impending foreclosures.

While the UK population is hovering around 63M with an annual growth rate at 0.7%, mortgage lending rate pegged at 4.5% and a low-interest rate evolving around 0.25% (ONS, 2016); and with an average house building completion rate at 300,000 on an annual basis of which is under half of that figure built-in, 2015 (City, 2016); the UK Economy that has been continually faced with a weak growth in income, credit constraints and job securities; will continue to face a stressed housing price cycle most particularly in England which constituent 84% of UK’s population (Colin, 2016).

1.1 Research Background

Studies have shown a lot of research, scholarly articles have been carried out to delved into a more radical approach to UK housing policies that will provide the need for an adequate supply of affordable houses in the UK Market. Therefore, exploring the Government Policies and Programmes on Housing such as The Stamp Duty, The Social Housing, Right to Buy(RTB), Help to Buy, Loan to Value Ratio (LTV), Standard Variable Rate (SVR), First time Buyers (FTB) and The 2015-18 Affordable Homes Programmes (Homes and Communities Agency, 2014) set out by the UK Government in partnership with private registered provider; macroeconomic fundamentals such as the Inflation Rate, Interest Rate, Halifax House Prices Index, House Price, Income, Unemployment, GDP, Population Growth , Monetary Policies and Housing Market Economy such as Housing Market Efficiency, Behavioural Finance and Housing Cycle, Market Volatility, Economic Theory and the Dynamics of Demand and Supply in Housing Market will enable the author to investigate the relationship amongst these variables and process of tackling housing supply deficit, unlocking existing properties, renters and incentivising a modern approach to house planning revolution.

As the task of underpinning an unpredictable UK Housing Market buoyed by the financial uncertainty, fiscal austerity and post-Brexit dilemma amongst policymakers (City, 2016), the author tends to apply a deductive approach so as to focus on data about the relatively large number of cases with the application of an empirical analysis of the data and (Strydom, 2014). Thus, the selection of these topic tends to base on facts, originality, subjectivity, validity and triangulation of data which originates from an epistemological perspective using both deductive and inductive approach because the author tends to identify and clarify a problem by developing assumptions or hypothesis in line with the application of theoretical theories towards accepting, rejecting or revising outcome of the result and developing a theory for the research (Willan, 2010). Also, it will provide a large spectrum and wide coverage of the challenges of the UK Housing Economy so as to provide an efficient justification of the research (Easterby-Smith, 2012). While positivists approach is often inflexible and artificial with the implication for action are not obvious and also without a subjective influence of the researcher. It also objects creations of a new process of research design, structure, methodology and theory generation.

1.2 Research Aim and Objectives

Aims

The aim of the study is to investigate the factors that determine the housing market in the UK. It resonates with the understanding of the supply and demand constraints that are buoyed Financial, macroeconomic and Behaviour economic fundamentals in the UK Housing Market.

Research Objectives

To investigate the application of demand and supply theory in the UK Housing Market.
To investigate the influence of Neoclassical housing and financial fundamental in the UK Housing Market with respect to UK house price fluctuation.
To identify gaps in Housing Financing in the UK Housing Market.
To determine factors influencing Monetary Policies on UK Housing.
To develop a model that will correlate house price, housing, financial and behaviour finance fundamentals.

1.3 Research Questions

What are the challenges faced by the UK housing market?
What factors do influence the performance of the UK housing market?
What are the weaknesses of the UK housing market in gaining an improved performance?
How can the UK housing market overtake it its challenges and weaknesses?

1.5 Significance of the study

The proposed study will play a significant role in the success of the UK housing market. The study will find out the factors which impact the performance of the UK housing market. In addition, the proposed study will explore the weaknesses and challenges faced by the UK housing market and finding out a solution for the UK housing market. The outcome of the proposed study will suggest the UK housing market which will be supportive for the UK housing market to gain its organisational goals and objectives…………………………………

Proposal for Undergraduate