Equilibrium is often restored automatically in the markets of goods and services and in cases when equilibrium is not restored then deliberate efforts taken on the part of government or other responsible authorities served to restore the equilibrium. An important factor that leads to generate disequilibrium is the existence of housing sub-markets (Maclennan, 1982). As far as the teachings of classical and neo-classical economists are considered they take housing market to be a single unitary body. The teachings were unreal as many complexities are involved in the real housing markets and these complexities are intensified day by day. Increased trends of globalization and economic integration have made the mechanism of equilibrium restoration for housing market of United Kingdom more complex.
Total demand for housing in the local markets of United Kingdom is summation of demand for housing in all the sub-markets. The housing prices are different across these sub-markets and are determined on the basis of market forces operating in these sub-markets. These forces vary from market to market and are difficult to be predicted. Many a time excess demand in one market offset the effects of excess supply in the other sub-markets. As a result to demand forces operating in opposite directions in each sub-market prices in some markets are inflated while at the same time prices in some other markets are deflated (Oxley, 2004).
Those areas that are near to medical centres and educational institutions and are easy to access with the help of transportation facilities are preferred to other areas of the same locality. Hence prices of dwellings in these areas go up (Jones and Watkins, 2009). It is the variation that is present in the attributes of housing across neighbourhoods that become responsible for the creation of uneven spatial demand for housing facilities. This factor further generates mismatch among available stock of housing and neighbourhood dependant level of demands (Jones and Watkins, 2009).