Assignment
i. How price-elastic do you think the supply of land is? Give reasons for your answer.
ii. Using the extract, explain with the help of a diagram how new technology might change the elasticity of supply of new homes.
iii. Show, using a demand and supply diagram, how subsidies can be represented.
iv. (a) Define consumer and producer surplus
(b) If there is an increase in demand for new houses, draw a diagram to show the likely effect on consumer and producer surplus.
v. In recent decades, the supply of houses has not increased to the same extent as the rise in demand for houses. Draw a diagram to illustrate the likely effect of this on house prices.
vi. What is the opportunity cost to the government of subsidising the housing sector? Assess a reason why government funding for social housing has been cut.
vii. Discuss the economic, social and environmental problems that a country like the UK may face if the housing shortage is not addressed.
Read the following articles then answer the questions that follow.
The number of new homes created in England has hit its highest level in almost 30 years, official figures show, with more than 240,000 properties added to the countrys housing stock in 2018-19. The figure, which takes into account homes lost through demolitions, has almost doubled in six years, after reaching a low of 124,720 in 2012-13.
However, alongside new-builds the figures include 29,260 homes that were created through a change of use, including 12,032 from former offices. These properties, built under permitted development rules introduced in 2013, have been controversial as developers do not have to get planning permission. They are able to divide buildings into far smaller homes than if they were building from new, some as small as 13 sq metres (12ft by 12ft).
The Home Builders Federation said almost 380,000 more homes were in the pipeline but that political support was needed to meet the government's target of building 300,000 homes a year by the mid-2020s. One policy recommendation by some is that governments should subsidise housing more heavily.
The housing charity Shelter said the government would not reach its target without a major programme of social housebuilding. Shelter's chief executive said: "Your average renter can't afford to buy a three-bedroom new-build; we need to be building the types of homes that people can actually afford." She added: "What is being provided is too often not good enough; 14,000 have been converted from empty buildings, including former fast-food shops and office blocks. "These homes come with no quality or space standards - developers dont even have to provide windows. The end result is terrible, cramped flats on industrial estates. This is not the answer for families needing homes."
Extract A, adapted from an article in The Guardian
A family in France has become the first in the world to move into a 3D-printed house. The four-bedroom property is a prototype for bigger projects aiming to make housebuilding quicker and cheaper. With curved walls designed to reduce the effects of humidity and digital controls for disabled people, this house could be an expensive realisation of an architect's vision. But having taken 54 hours to print - with four more months for contractors to add in things such as windows, doors and the roof- its cost of around £1 76,000 to build makes it 20% cheaper than an identical construction using more traditional solutions. The team now believe they could print the same house again in only 33 hours.
The 95m (1022ft) square house - built for a family of five with four bedrooms and a big central space in Nantes - is collaboration between the city council, a housing association and University of Nantes. The council's lead on technology and innovation says the purpose of the project was to see whether this type of construction could become main stream for housing and whether its principles could be applied to other communal buildings, such as sports halls. He believes the process will disrupt the construction industry.
Extract B, adapted from a BBC news article
Format your assignment according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.