The Impact of the Credit Crunch on UK Housing Market

Abstract

This dissertation is primarily focused in to the housing prices of UK housing market and the lending situation during the financial turmoil. Giving more emphasize in the housing prices, this dissertation thoroughly examines the housing boom and bust of the UK housing market keeping into mind that the how much credit crisis affected in to it. It also attempts to understand the volatility of UK housing market along with the credit availability in the market. Due to the volatile market, there is always fluctuations occur in UK housing market. In contrary, this research tried to analysis the housing prices trend along with the type of mortgages which are available in the market. The research has been gone through to understand whether house prices overvalued or not. There are several factors that affects the house prices from demand and supply sides, research tried to outline those factors and their impact on house prices. Due to inadequate supply of houses in order to satisfy the housing demand, there was housing boom. Eventually, lending excessively mortgages loan invited massive financial turmoil. Despite of downturn in housing market, in recent years the market is moving slowly to upward.