scottish economy
Instrument of assessment
Outcome 1
The market I am choosing from the Scottish economy is the housing market. No matter where you go there is always a demand for housing. There are 5,295,000 people living in the Scotland but not enough housing for them all. Many people struggle to get into affordable housing due to the scarcity, since many were allowed to be sold to tenants while Maggie Thatcher was in power. Unfortunately for us the money raised by privatising these houses was not put back into the economy to build new ones. This is why much of the population are left with two main choices, rent privately? Or get on the property ladder and buy?
A few years ago house prices were at their peak. Many property developers made a fortune managing to sell before the economy crumbled. However since the credit crunch hit our economy a large amount of people, including myself were made redundant from their jobs. This left many with little to no income in some cases. These people who may have felt secure enough to possibly buy a house were now left with no other option but to rent.
However for some, many first time buyers, this was the perfect time to get on the property ladder as house prices plummeted. Banks may have been reluctant to lend, but with a decent deposit many ‘’struck it lucky.’’ Others, who had made their fortune beforehand, now are able to add homes to their portfolios at a fraction of the price. Since many people now have to rent, there is a substantial market for Buy to let properties. A clever businessman would see this as a golden opportunity and take full advantage.
Because some entrepreneurs have been able to identify the demand for all types of housing, they have built, and made deals to sell them to the councils as affordable housing to try and relive the demand in local areas.
However building houses may seem like a great way to make quick profit, but there is a lot of ‘’red tape’’ developers must take into account. Some may
Outcome 1
The market I am choosing from the Scottish economy is the housing market. No matter where you go there is always a demand for housing. There are 5,295,000 people living in the Scotland but not enough housing for them all. Many people struggle to get into affordable housing due to the scarcity, since many were allowed to be sold to tenants while Maggie Thatcher was in power. Unfortunately for us the money raised by privatising these houses was not put back into the economy to build new ones. This is why much of the population are left with two main choices, rent privately? Or get on the property ladder and buy?
A few years ago house prices were at their peak. Many property developers made a fortune managing to sell before the economy crumbled. However since the credit crunch hit our economy a large amount of people, including myself were made redundant from their jobs. This left many with little to no income in some cases. These people who may have felt secure enough to possibly buy a house were now left with no other option but to rent.
However for some, many first time buyers, this was the perfect time to get on the property ladder as house prices plummeted. Banks may have been reluctant to lend, but with a decent deposit many ‘’struck it lucky.’’ Others, who had made their fortune beforehand, now are able to add homes to their portfolios at a fraction of the price. Since many people now have to rent, there is a substantial market for Buy to let properties. A clever businessman would see this as a golden opportunity and take full advantage.
Because some entrepreneurs have been able to identify the demand for all types of housing, they have built, and made deals to sell them to the councils as affordable housing to try and relive the demand in local areas.
However building houses may seem like a great way to make quick profit, but there is a lot of ‘’red tape’’ developers must take into account. Some may