Last week, I wrote about supply and demand within markets. Supply and demand effects all free markets. The housing market in the UK, particularly in the south is seeing rising prices, because demand is high and supply is low. (more…)
The concept of supply and demand affecting prices is well known. If something is scarce, people are willing to pay more for it, especially if they have the money to do so. In the UK housing market there has been a shortage of housing for many years and too few new properties have been built. This is part of the reason for increased prices. Demand has also been higher, but all is not what it seems.