Impact of Government on UK Housing Market

Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
1. Presenting the change in average price of house in UK over a period from the year 2009-
2019.............................................................................................................................................3
2. Stating the economic determinants of change represented in price of house .........................4
3. The manner in which action of government impacted housing market in UK from the
period of 2009-2019....................................................................................................................8
4. Predicting an impact of Coronavirus on the UK housing market ..........................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Business is been outlined as an entity that is engaged in the professional, commercialised
& industrial activities. It refers to an organized effort & activities of an individual in producing
and selling the goods and the services for earning profit. In other words, it refers to an
organization or the economic system where the goods & services are been exchanged for gaining
profits and earning money. The present study is based on UK housing market and provides a
deeper insights towards the change on in the price of houses over a period of 10 years.
Furthermore, the factors or components that influence the prices are also been highlighted in the
study. Moreover, it also includes the action taken by government along with its effect and
predicting effect of novel coronavirus on housing market in the future.
1. Presenting the change in average price of house in UK over a period from the year 2009-2019
Interpretation- The above graph shows that an average price in UK has been increased
by 2.2% in month of November in year 2019, up from 1.3% in the month of October 2019.
Over the last 3 years, general lag in the UK housing value growth has been seen which is mainly
impelled by the slowdown in east & south of an England. In East of England, the lowest growth
has been accounted where the price declines by around 0.7% over the year that is from 2009-

2019. This has been followed by the London, where the prices increased with a percentage value
of 0.2% over the years. Over the foregone years, the prices of UK house has been rising at fast
rate on the record for several years, as the sellers fell as more assured about prospect for housing
marketplace after a general selection as per the right-move (Chuang and et.al., 2018). An average
price of the properties in the market jumped by around 2.3%, a large rise for time period since
property site begin the cost of house index in the year 2002. Around 65000 of the UK geographic
area were been marketed over a period with average asked price of approx. pound 306810. In
accordance to right move, an option result provided panel of the stability for the movement after
instability period since Brexit vote that had caused some in putting off the move. Housing market
dislikes an uncertainty, unsettled the political look over last 3.5 years since EU referendum has
caused some movers in hesitating. There seems to be the release of such pent-up demand that
suggests presence in the store for spring market.
As of the July 2019, prices of residential property in UK reflects the lowest annual rise
since the year 2012. An average price of the house in UK increased through 1.1% within 12
months prior to the month of July 2019, by reaching estimated value of around 216 thousand
pounds within 2nd quarter of the year 2019. The trend of rising the prices of housing is seen in
entire UK as when the comparison of various European countries' residence property is made,
houses became as more and more expensive from the year 2013 onwards in UK. The prices are
not been expected to decline, it is predicted that the residential prices would be growing in
coming years because British government would begin to focus on the domestic issues after the
condition of Brexit.
Thus, average price of house in UK increased by 2.2% over years to November 2019, up
from the 1.3% in the month of October 2019. The average prices increased over year in England
to Pound 251000 that is 1.7%, Wales to Pound 173000 that is 7.8% ,Northern Ireland of pound
140000 and Scotland to pound 1550000 which is seen as 3.5%. An annual rise in the England
has been driven by North West & West Midlands. However, the lowest growth rate found East of
England resulting as negative 0.7% followed by the London as positive 0.2% in an overall UK.
2. Stating the economic determinants of change represented in price of house
The housing industry is mainly induced by economic state, real income, interest rates,
change in population size etc. With the period of increasing demand and the limited supply, it