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    Hi all,
    With exams coming closer and revision starting, I have decided to start this thread.
    anyone in need of help with essays or short answered questions, feel free to ask below and I will try and answer the questions as fully as possible.

    Thanks
    AK
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    Sorry you've not had any responses about this. Are you sure you've posted in the right place? Here's a link to our subject forum which should help get you more responses if you post there.


    Just quoting in Amusing Elk so she can move the thread if needed :wizard:
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    This sounds like an awesome idea, sure people will be interested!

    Moved to Economics
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    Yay


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    Finally, an admission from the chancellor that Britain’s housing market is well and truly broken. Even a political party overflowing with estate agents, landlords and property developers knows the housing market is failing, not least because their own sons and daughters despair at affording a home.
    But grand promises of 400,000 new homes, a help-to-buy scheme in London, and a doubling in the housing budget may still not be enough to reverse the decade-long fall in home ownership, that central tenet of Conservative philosophy.
    No longer do rising house prices produce a feelgood factor among the voting population. Instead, there’s the feel bad factor of a generation used to renting, paying half or more of their income to their landlord. It may explain why in this autumn statement the chancellor has made a second assault against one of the more powerful bastions in his own party, buy-to-let landlords.
    In July’s budget he took millions off landlords with new taxes coming into force in 2017. He will find a further £1bn a year by making investors pay an extra 3% stamp duty on buy-to-lets and second homes. In real terms, this means that on a typical buy-to-let purchase of £184,000, the tax will rise from £1,180 to £6,700. The Association of Residential Letting Agents promptly called it “catastrophic” while the National Association of Estate Agents said it would “put a stop to those entering the sector”.
    Telegraph readers will be in shock. The paper’s “Axe the buy-to-let tax grab” campaign features “persecuted” and “demonised” landlords, despite the fact they have made fatter profits than any other group of investors this century. The boss of one big estate agency group, Ludlow Thompson said the chancellor is now treating the buy-to-let market “like the tobacco industry”.
    About time, first-time buyers will say. They have queued at new home launches, or grim “open days”, where they have been consistently outbid by the financial firepower of tax-advantaged buy-to-let landlords.
    Hitting landlords and second-home buyers should provoke a welcome reduction in demand.
    What about the supply side of the market The promise is 400,000 affordable housing starts by 2020-21, including 200,000 starter homes sold at a 20% discount to market value, with £2.3bn allocated to building the first 60,000. Another 135,000 homes will be built under shared ownership schemes open to anyone earning under £90,000 (in London) or £80,000 elsewhere. Combined with an easing up of planning rules, it adds up to a developers’ charter, with Taylor Wimpey, Barratt Developments and Persimmon among the fastest-rising shares on the London stock exchange on the day of the chancellor’s speech.
    Delivery is the problem. It’s a very good time to be a brick maker or bricklayer, with the industry hitting capacity constraints. Quite why this has become such a problem is a mystery; with a much smaller population, Britain built many more houses every year in the 1950s and 1960s. One reason is that small-scale developers were killed off during the financial crisis, leaving the market clear for the giant developers. But what’s good for Barratts is not always what’s good for Britain.
    Rental campaigners are not concerned by the focus on the big housebuilders. Betsy Dillner of the Generation Rent campaigning group said: “After raising £6.9bn to invest in new affordable homes, George Osborne had an open goal, but by deciding to hand the money to private developers instead of bringing down rents for private renters, he has spooned the ball over the crossbar.” Starter homes can be sold off at full market value after five years, which she calls “another reckless giveaway”.
    In Ireland, a country suffering a similar rental crisis to Britain, the government is introducing “rent certainty”, a sort of rent control-lite but there is no sign of that happening on this side of the Irish Sea. Britain’s property laws urgently need reshaping, to give tenants better protection from absurd rent rises and retaliatory evictions, but also to give landlords better powers to deal with rogue tenants. By all means, put in place measures to revive owner occupation but right now, ‘generation rent’ can’t even afford to pay the rent.
    (Adapted from ‘The Guardian’ 25th November 2015)

    Section AQuestions
    In total there are 50 marks available for this question. The marks for each section are given for each part. It is important to answer as fully as possible. Marks will also be awarded for clarity and for the use of correctly labelled diagrams where appropriate.

    (1) According to the article why is the UK housing market described as being broken(8 marks)

    (2) Using diagrams to help with your answer, explain the effects of the chancellor’s tax measures on house prices in general. In your answer you should consider the link between the rental sector and owner occupied sector. (12 marks)

    (3) What does the evidence from the article suggest about the market structure operating in the house building sector Justify your answer. (10 marks)

    (4) Why does the boss of Ludlow Thompson estate agents say that the chancellor is treating the buy-to-let market “like the tobacco industry” (8 marks)

    (5)Examine the measures the government might use to repair the so called ‘broken’ housing market. (12 marks)





    Hi. These are just some of my thoughts on these questions- i hope you find them helpful.

    Question 1:
    Described as being broken because new entrants to the market will find it very expensive. Closes down the number of people that can enter the market. Wealth distribution will be unfair, because the home owners or people renting will find it more expensive- as landlords will be charging higher prices to keep up with the increased taxes. Therefore the disposable income of homeowners, people renting houses will decrease significantly, whereas the landlords will find their income is not affected.

    Question 2:
    Geographical immobility- increasing house costs will mean workers will find it too expensive to move for a better job (even if they have good skills). Link in the wealth distribution.
    The diagram can be: Use and Demand Supply diagram. Supply should be inelastic, and when it shifts out to the right it should go to elastic.
    Demand should shift out-keep it elastic.
    Then make sure the diagram is fully labelled (axis, origin, Price moving up significantly, quantity moving out but very little)
    Then say that the owner occupied sector decreases because it is expensive for new entrants to the market (Maybe mention the wealth distribution again).
    Then say that the rental sector will increase in relation to the owner occupied sector, because it is cheaper to rent a house than purchase it.

    Question 3:
    I don’t know what to say for this.

    Question 4:
    The boss of Ludlow Thompson refers to the tobacco industry, because it has been heavily taxed- like the chancellor is doing to the buy-to-let market.
    You mention the taxation, and how they are trying to restrict the quantity of houses being sold. The taxes are resulting in higher prices, therefore homeowners will have the wealth effect- because their house is worth more and thus they feel like they are richer. Furthermore you can mention how the non-homeowners find they are poorer, as they dont own a house (as its too expensive). Thus a wealth distribution is unfair for the people.

    Question 5:
    To improve the ‘broken’ housing market they can increase the level of help given to new entrants to the housing market. So for geographical immobility they can increase the ‘help-to-buy scheme’, this can combat geographical immobility because workers will find it cost effective to move for a better job in the city.
    If there is a subsidy for the home builders then they can provide a cheaper house in higher quantities. Again mention wealth distribution and how this will be tackled at the same time.

    ((IF YOU CAN GET AN ANSWER FOR QUESTION 3 IT WOULD BE APPRECIATED IF YOU COULD SHARE THIS WITH US))
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    HELP Please- Did a mock today AQA Economics and ran out of time on my final 25 marker. Couldn't do a conclusion. Will I be capped at 20/25 marks even if everything else was good?
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    (Original post by Bigpaddy27)
    HELP Please- Did a mock today AQA Economics and ran out of time on my final 25 marker. Couldn't do a conclusion. Will I be capped at 20/25 marks even if everything else was good?
    I don't do AQA but probably, clearly states for 21+ (Level 5) You need a conclusion/summary with evaluation (and you'd probably need some final analysis just for those top marks) afraid without a conclusion you're only level 4
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    (Original post by Bigpaddy27)
    HELP Please- Did a mock today AQA Economics and ran out of time on my final 25 marker. Couldn't do a conclusion. Will I be capped at 20/25 marks even if everything else was good?
    For my mocks I received 18/25 as I didn't get to finish off my final point and had no conclusion so I think final marks do matter a lot


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