Impact of Inflation and Brexit on Housing Prices in the UK

Business Economics Module

Table of Contents
Executive summary..........................................................................................................................3
Introduction .....................................................................................................................................3
Main body........................................................................................................................................3
Effect of Inflation on business.....................................................................................................6
The role of government to for successful business. ....................................................................7
Recommendation.............................................................................................................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................8
Books and Journals......................................................................................................................8

Executive summary
The report is about Inflation Brexit effect on Housing price which lead to increase in
price of houses and price of monetary lending to consumer at a time of inflation. This also
include the role-played by government to develop the business in the country.
Introduction
Inflation occurs when there is declining power of the currency over the time period.
Inflation affects in increasing in price of goods and service in the country (Syromiatnikova,
2017). UK's inflation arises in the year 2018 and shows 2.29% and increase in 1.55% from 2016.
While the UK left the European union are the trade deal between the two country, price of
market country is being affected since 2016. This report is based on the affects of Brexit on
house price in UK country due to the separation of the contract, prices are affected in the country
with the rise in inflation rate. Businesses are fluctuated with the affects of inflation and Brexit
house price in UK.
Main body
The housing price are being affected due to inflation in the UK country and which results
in people expenditure increases and prices of house are rises with the time. The government had
put the stamp duty on buying the houses and increases with the number of property purchase by
the person. Stamp duty land tax is the tax which s collected by the government from the
consumer while purchasing the property over the certain price has to pay. Rate of tax is
depended on the various factors like type of property, residents or non-resident, first home or
second home purchase by the buyer. After the Brexit, 2016 fear of High house price crises near
corner (Hamnett and Reades, 2019). House price of UK in 2016, EU referendum fixed at
£213,927 by Land registry figure. While in 2019 it been risen to £230,292.

The graph shows the annual rate change in UK price from 2014 to 2020. If there is no deal with
Brexit, homebuyer have faced the uncertainty implication of decision. The cause after the Brexit
inflation in UK:
 Supply and demand: UK houses prices is growth the total number of household leave
behind the supply of housing. This cause property to be overvalued, in spite of low
volume of transactions by people and mortgage lending.
Illustration 1: Annual Rate change in UK price from
2014 to 2020.