There is no need to stress that after the WWII, the United Kingdom, as well as the rest of the Tripe Entente members, faced complete devastation, with most of the state being destroyed. As a result, the necessity to rebuild the British society emerged, and the creation of new residential communities was the first step towards it. However, because of the lack of urgency and the reconsideration of priorities for the UK government, the house building rates have dropped in 2000s and 2010s significantly.
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When reconsidering the issues that the modern UK house building companies have in the present-day world, one must mention the fact that the focus on the upper-class clientele seems to have played a malicious trick on the former. More to the point, the fact that a range of companies had to adjust to an entirely new environment of the global market and, therefore, utilise impressive resources in order to retain their competitiveness in the target area, has played its toll on the house building rates within the state. According to the recent report, “The inevitable response, given the shift in the mortgage market, was to go for the higher end of the market where potential buyers were equity rich and could buy with low loan to value mortgages” (‘Britain’s biggest housebuilders’ 2014, para. 13).
In addition, the infamous bursting bubble of 2008 has also played a huge role in defining the demand rates for the real estate property that was built in 2008– 2010s: “In 2008, as the housing bubble burst spectacularly, the house-building sector imploded with such force that the survival of many of its biggest names seemed unlikely” (‘Top 20 House Builders 2012’ 2012, para. 1).On the one hand, the infamous bubble seems to have little to do with the field of house building; on the other hand, the economic decomposition of the global market, which was set off in 2008, did lead to a major decrease in the property values within the state, therefore, triggering the lack of initiative the house building industry and the oversaturation of the property market with the property that was built in the post-WWII era (Archer & Cole 2014).
The aforementioned fact sheds a lot of light on the impact of macroeconomic factors on the house building process within the state. Indeed, a closer look at the changes, which have occurred in the United Kingdom over the past few decades show that the emphasis on the globalisation process has facilitated the following shift towards the higher end of the market within the United Kingdom. Forced to reconsider their pricing policy due to the entry into the market, where competitive rivals posed a tangible threat to their financial success, the UK organisations working within the house building field were made to change their pricing policy drastically.
The fact that a range of middle and small house building businesses in the United Kingdom turned out to be unfit for the realm of the global market also displays the connection between the macroeconomic factors and the steep decline in the house building rates. As the pricing strategy for the 2000s–2010s buildings needed to be raised in accordance with the demands of the global market, the demand for the specified product decreased within Great Britain, with the following increase in demand for older buildings. It would be wrong to claim that the selling price of the houses built in 2000s–2010s has become unattainable for the British people, yet one must admit that, compared to the 2008–2009 rates, the current prices have increased by at least 40%.
Because of the influence that the global market has on the UK house building industry in the 21st century, the demand for the buildings created in the post-war area is impressively high compared to that one for the houses built in 2000s–2010s. Particularly, the pricing strategies, which needed to be geared towards raising prices after entering a more competitive global economy area, can be viewed as a direct effect of the macro economy. The crisis of 2008 is another proof of the fact that the challenges, which emerged on the macroeconomic level, affected the UK house building industry as well. More to the point, the links between the elements of the macro economy also allow identifying the reasons for the UK house building field to depend on the changes within the global market so much.
Depending on their international partners and facing the need to uphold to their high standards within the complex realm of the global competition, the major house building organisations of the United Kingdom soon faced the need to adjust to a range of macroeconomic factors in order to introduce sustainability into their operation processes and satisfy the needs of the key stakeholders. Thus, it can be suggested that by overcoming some of the key supplying challenges, including the promotion of the property built in 2000s and 2010s and , as well as reducing the prices for the ‘new’ buildings, one will be able to increase the house building rates in Britain.
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Archer, T & Cole, I 2014, ‘Over-reliance on private housebuilders is fuelling UK’s housing crisis,’ The Guardian, Web.
‘Britain’s biggest housebuilders,’ 2014, House Builder, Web.
‘Top 20 House Builders 2012’ 2012, The Construction Index, Web.