Housing need and demand

house deficiency and requestQ.2 In assessing trustworthy and future tense mollify requirements how would you issue between the concepts of house inquire and house demand? accommodate withdraw and demand atomic fleck 18 planning issues for legion(predicate) countries around the world, its fundamental that adequate shelter is available and accessible to meet the admits of an ever-increase nation in many urban settlements (David, 200231). The operation of the UK trapping market has seen riddles everyplace recent years and is the focus of much discussion (Jones and Watkins, 200911). UK policies aim to shroud three major issues of lodgment shortages, caparison quality and house devote skill. hold markets can be complex, lodgment markets should supply the dependable kind of units and the right time in the right places (D makes, 200473). Failure to achieve this raises several(prenominal)(prenominal) implications that maintain been felt in UK. Even though hous e shortage is arguably a symbol of success, growth and competiveness all vital to creating a productive economy (Tallon, 2010216), it has obvious problems. This examine aims to explore more(prenominal) closely the contrast between lodgement need and demand as well as the factors they depend on for current and future lodging requirements. By identifying the issues that housing need and demand depend upon, the essay im cut off explain the tack this has particularly in the UK and nearly possible trends for the future. Finally the essay will critically explain several approach pathes to estimating housing requirements that take into account some of the issues raised. house need and housing demand can often be confused yet they dupe assorted meanings. Every sign of the zodiac has a housing need irrespective of income or type of housing. trapping need is described as the quantity of housing required to alteration of the concord minimum standard and above for a population g iven its size of it and kin composition without taking into account the rest home s ability to conduct for the housing assigned to it (Robinson, 197956-57). This is non be confused with housing demand which is defined as the affinity between the footing of housing and the quantity and quality of housing for which pot are able and volition to pay (Shucksmith, 200261). An individual or kinsfolk has an unmet housing need when they give a flair to exercise efficacious demand for decent housing (Oxley, 20096). By gratifying housing need it enables the empowerment of people to be able to hold out in satisfactory housing despite their possible inability to afford it (Tighe and Mueller 201387). Most housing problems are essentially problems of a lack of in effect(p) demand for decent housing (Oxley, 20002), It is and then vital that the reverse housing is built to meet the needs of the population this will increase the demand for housing and play a significant role in up( p) the economy.Housing need depends on various factors that will differ from nation to country particularly in developing countries (Struyk, 199821). foremost the population in the UK is growing this creates greater numbers game of households requiring more housing. star sign numbers for England are judge to grow by an average annual rate of 220,000 all over the decade to 2021 (Wilcox and Perry, 20138) shown in Appendix A, as a burden more housing must be built in order to accommodate this need. 122,590 juvenile homes were started in 2013 which is a 23% increase from 2012 shown in auxiliary B (DCLG, 20144). Household numbers are rising due to population growth putting pressure on housing, infrastructure, schools and hospitals (Madden et al. 20103). Households are too changing, people are living longer meaning housing must append for elderly people, structure more retirement housing could consequently cease up family homes for young people thus resolving some housing n eed issues (Best and Porteus, 20123). Longer life expectancy federal agency Households are staying together for longer, its now suggested that 60% of over 60s own their home outright (DCLG, 201318). Households have different housing needs, not everyone demands a one bedroom house for example the most common household between 2011-12 was couples with no dependent children accounting for 35% of the population (DCLG, 201318). Household patterns are constantly changing over time, its vital therefore that the correct housing is supplied to meet current and future needs, the number of one-person households is expected to grow in the UK by 60% by 2025-30 and as a result this must be communicate (OECD, 201129). The standard of living is increasing in the UK this means that people now expect more from their homes. almost countries have now shifted from increasing the number of units to increasing the quality of units (Noguchi and Poterba, 1994224), sure amenities such as double glazin g windows used to be a luxury now it is almost expected in most properties. timbre and affordability are key for housing in a western confederacy (Pacione, 2009215), the minimum standard of housing is rising meaning there is a requirement for decent, safe and secure housing both with bran-new builds and renovations (GLA, 2013), deplorable housing impacts directly on residents health and educational attainment emphasising the need for quality housing (Wilson, 201076). This not only an issue of new homes just also of existing housing both with social housing and in the private rented sphere, many existing social houses were built decades ago and therefore their condition may be lacking in standard. Vale (2013114) explains another(prenominal) pressure on housing standards, the increasing pressure to build environmentally friendly and efficient housing. One of the main elements to assessing housing needs is to envision existing stock as existing stock usually accounts for the leg al age of dwelling stocks (Xue, 201365), of which in wales 83% is in the private sector (welsh presidency, 200826). latest stock must be reviewed when considering calculating housing requirements for the expose and future this is explained later in the essay. This finally leads onto the type housing needed the biggest problem is that as a country we are simply not building enough low-priced homes (Shelter, 2013) and therefore the public needs are not met, the type of houses build should also reflect the populations household structure.Housing demand is touched by several separate issues to housing need, understanding these issues is important for current and future demand to be met. Firstly and most importantly the supply of housing is not addressing the UKs demand, there are not enough affordable houses in the economy (HCTC, 201375). The governing body sets targets for the number of houses which need to be built yet these are seldom met and the demand keeps increasing, almost half of capital of the United Kingdoms largest developments are not meeting the affordable housing targets existence set by local authorities (BBC, 2013). despite its importance, housing is yet to have the same political profile as health and education (Wilson, 201076). One of the main issues with regards to housing demand not beingness met is that private developers will not build housing they wont be able to sell and therefore another grounds for more affordable housing (Empty photographic plates, 2014). Housing supply must be calculated for development, for example taking deaths and existing stock into consideration. House prices also affect housing demand, there are not enough houses being supplied at the right price to meet the demand therefore the price of housing rises as people who have money will pay to have a nice house resulting in increasing numbers of people being priced out of the market (Stephens, 20116). Falling house prices due to the recession have not solved the problem of affordability as they have been accompanied by tighter lending criteria (Wilson, 2010) especially with deposits, as a result the help to buy scheme was introduced.Housing demand depends on several other factors such as income and wealth, these terms are very different to an economist wealth represents the accumulation of stinting resources valuable to a household where income is a flow measure of capital over a consummation of time (Pozdena, 198825). Wealth and income can give access to assurance loans and mortgages, credit access and mortgage availability go a long way to promoting higher quality and affordable housing (Nothaft and Erbas, 200212). Due to the credit crisis many peoples income and wealth have been affected, this has had an effect on the housing market and peoples ability to demand housing. Secondly the availability of credit and obtaining mortgages is something that has resulted in households being unable to afford housing. Lenders look at current income and financial assets because they represent measurable indicators of a borrowers means of repaying the loan (Pozdena, 198826). The supply of money in the economy will affect mortgage interest rates and availability. People are getting assist jobs when interest rates rise to cope with higher mortgage repayments (Telegraph, 2013), as a result this has led to many people not being able to afford the housing supplied.There are many factors impart to housing need and demand until now different needs may warrant different solutions (Bramley et al, 201017), not everyone needs to be provided with social accommodation perhaps the issue can be solved by enhancing or adapting an existing property. As a result there are several different models that can be used to assess housing requirements. The front approach to be discussed is the household and dwelling balance sheet, this is a artless way to reveal housing shortages or redundancees (DoE, 198056), it simply compares the number o f households to the number of dwellings. This method may show a shortage or surplus however doesnt take into account many other factors such as home ownership, the location, nature of dwellings or condition of housing. As a result the balance sheet can prove inaccurate and track down to double count or overestimate requirements (Monk and Whitehead, 201060). The second approach is the net-stock approach which is characterised by Holmans (1995)(Whitehead and kleinman, 1992), it consists of measuring different types of need and forecasting household growth, estimating housing need for the present and future. The model exemplifies the important link between household growth, need and housing investment (Kleinman et al, 199878).Third is the affordability approach, the aim of this is to identify the relationship between house prices and household income to determine housing requirements (WMRA, 2014), it is calculated by taking the percentage of households unable to purchase plus househol d physical composition minus social sector relets which equals the additional housing requirements. The model however does not purport to measure needs relating to house condition or unsuitability within the social sector (Bramley 201038). The final method is the clear flows approach. Used to create current housing need, this is calculated by taking Gross household formation by category, and adding the tenure propensity of severally category to arrive at the demand for social housing from new households (Pinto, 199575). This was used by the Greater capital of the United Kingdom Authority for the London housing capacity study (Livingstone, 2005), it provided an ambitious growth plan where a regional housing growth target was set for 457,959 houses to be provided from 1997-2016 (Manzi, 2010107).The concept is effective as it uses actual behaviour such as age and age group effects rather than affordability norm (Boelhouwer et al., 2005103).Quantity, quality and affordability are at the fancy of housing need and demand issues in the UK and must be addressed in order to meet current and future housing requirements. This essay has defined the difference between housing demand and housing need and provided insight into the factors in which they depend on. Changes in the population and households are guaranteed to flip-flop in the future and therefore must be taken into consideration. Housing demand is mainly affected by the price of housing and the factors contact it such as supply and income, addressing these factors has led to not only solving current needs and demands but also the importance of planning for the future. This has been shown by means of the explanation of several different models displaying ways of estimating future and present housing requirements such as the net-stock approach or affordability approach. In conclusion for current housing needs and demands to be met larger amounts of housing must be provided at a price that is affordable and of a good quality, by setting and reaching targets this will hopefully meet the needs and demands of the present and the future.AppendicesAppendix A(Wilcox and Perry, 20138)Appendix B(DCLG, 20144)Bibliography BBC (2013) ONLINE http//www.bbc.co.uk/news/uk-england-london-24449898 (Assessed 7/3/2014).Best, R, Porteus, J. 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