Complete 10 page APA formatted essay: Housing finance and economics.Owner-occupation and social renting had taken the place of private renting as people have money and option to buy ownership houses a

Complete 10 page APA formatted essay: Housing finance and economics.

Owner-occupation and social renting had taken the place of private renting as people have money and option to buy ownership houses as well as local authorities made construction for occupancy of public. It made drastic change in market. Other factor was rent control system which impedes private landlord to invest further in real estate. Gradually private renting system reduced to a certain limit till 1980s. (Sherman 2008).

But it was observed by experts that private renting system was necessary in emerging globalization. In 1980s Conservative Party came into picture. Their aim was shift of house property stock from local authority to owner occupied authority. Owner occupied sector later had been modified as Registered Social landlord. Many houses were transferred from local authority to Registered Social Landlord sector as a result of arrival of Right to buy policy. These houses are maintained by non profit making landlords. These dwellings are later handed over to housing associations known as Local Housing Companies. Thus the system paved the way of low cost living houses. Right to buy and deregulation of mortgage finance encourage common people to incline to buy residence. In addition to this deteriorating condition of housing where they lived and decrease of subsidies result in higher rent which provoke people to own houses rather than rent a house. Top of this the residualisation was a considerable factor for social rented sector and along with this the poor image of social housing has drifted on this process. (Birchall 1992)

During this period the socio economic and political factors have accelerated this residualisation. In the period of leadership of Margaret Thatcher Britain witnessed a great fall in macro economic factors like GDP, industrial output, investment. Most of bankruptcy of company and joblessness had taken place in that time. As a result Government cut down planned spending