A new university has been built outside a small town in Scotland, which has resulted in a mass influx of workers and their families to the area. As a result of this, the town has been suffering from a shortage of available rental housing. In response the local government has pledged to build many new houses for rent in a new estate at the edge of town, which will be complete in three years' time. The local government expects to make a large profit once the houses are complete.

What would you expect to happen in the market for rental housing in the town over the next three years? Do you agree that a large profit will be made?

Answer rating: 100% (QA)

Here is what I would expect to happen in the rental housing market over the next 3 years Rents will ... View the full answer