Both space and asset markets of residential property are worsening as the real economy enters a deep recession brought about by COVID19.

Part A

Explain the macroeconomic and regulatory reasons why both rental yieldsand asset prices are are falling?(4 marks)

Part B

Explain how the deferment of of mortagage repayments has prevented an outright crash of both rental yields and asset prices. Discuss the drawback of mortgage deferment upon the borrower.?(6 marks)