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Specification:

  • Demand and supply

Click to the article and then answer the questions:

UK house-buying demand falls at fastest pace since 2020 lockdown

  • Define demand

  • Explain the relationship between the Bank of England base rate and high street mortgage rates

  • ‘With demand falling, the Rics house prices index dropped to minus 2 per cent in October’. Using a demand and supply diagram, analyse the impact of falling demand on the housing market

  • ‘Prices are falling even as the stock of housing per surveyor has dropped to the lowest on record’. What does this suggest about the rate of change of demand relative to the rate of change of supply?

  • ‘The lettings market remained unhealthy . . . landlord instructions fell to a net balance of minus 14 per cent’. Using a demand and supply diagram, analyse the effects on the rented property market.

Gavin Clarke, Emmanuel College

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