3: Economic, Environmental, Social & Governance Factors

Question 1

UK Residential property market is made up of 2 main sectors:

Answer 1

• Owner occupied housing: person who owns and lives in property
• Rented housing: social housing (local authority) & privately rented housing

Question 2

The commercial property market is divided into 3 sectors:

Answer 2

Office
Retail
Industrial

Non residential use and market is more volatile

Question 3

What is the role of the Monetary Policy Committee(MPC)

Answer 3

Set the Bank of England base rate - to contain inflation

Question 4

Inheritance Tax

Answer 4

IHT is payable on the value of the estates of a deceased person

Question 5

Council tax?

Answer 5

Council tax is charged by local authorities to pay for local services

Question 6

SDLT

Answer 6

Stamp duty land tax

Question 7

LBTT

Answer 7

Land and buildings transaction tax (Scotland)

Question 8

LTT

Answer 8

Land transaction tax (LTT)

Question 9

Environmental, social & governance factors (ESG)

Answer 9

Many lenders now adopt strategies that are consistent with ESG responsibilities

Question 10

What is a swaps market

Answer 10

Market between financial institutions where variable rate money is swapped for fixed rate money over a specific term