Impact of Economic Factors and Government Actions on UK Housing Market

Global business
environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Average change in housing prices in UK changed across 2009 – 2019.................................3
Economic factors of the changes outlined .............................................................................5
Government action over the period 2009-2019 affected the UK Housing market.................9
Consequence of COVID-19 on UK's Housing market.........................................................10
CONCLUSION ...................................................................................................................13
REFERNCES.................................................................................................................................14

INTRODUCTION
Contemporary business environment consist of factors that are affecting their overall
functioning of a particular industry. It has a very significant impact on the trends that are part of
a industry and affects its performance in long run. Present report deals with different aspects that
are part of housing industry of UK. Since last ten years there have been many recent changes that
have affected the housing industry of UK and it is seem to impact its functioning in coming
future also (Lipkova, and Hovorkova, 2018). There are certain economic determinants that are
major reasons for this change and at same time certain government actions have been taken that
has impacted the housing market of UK in all these years. Further, the present scenario of
presence of COVID-19 virus has also created a very signifiant impact on the functioning of
housing industry of UK and is going to affect it in negative manner in coming future period of
time because its impact can be certainly seen on economics of each country where it is present.
TASK
Average change in housing prices in UK changed across 2009 – 2019
In the year 2010 after UK was trying to recover from the situation of recession there was
a house growth that was observed in middle of decade and it lead to a situation of slowdown
towards the end. There were situations of political uncertainty as European union there was a
referendum and it lead to creation of high fragmentation in the whole economy. South east and
London saw a very high bounce back because of the financial cross and there was a high Brexit
vote.

South east and London has seen a highest level of house pricing growth in last few decades and
there has been a rise in the average property growth of approximately 72 percent that is more
than the double of growth that can be seen in UK prices growth that is just 33.7 %. according to
measurement of housing price index the falls is very small but home agents suffer that homes are
being sold for 5-10 % less as compared to years 2015-16.
The latest housing prices data published by the GOV.UK by HM land registry in the year
2019 in Northmen clearly indicates that there has been a rise of 2.2% rise as compared to just
1.3% in year 2019 in month of October. In last there years there can be seen a general slowdown
that has taken place in the housing price growth of UK the major reason for this change has been
in East and south of England.
According to affordability of properties the house price growth has seen a high ranking
growth and this has resulted in further high rise in the ratio of house price earnings. It has lade to
increase in difficulty for buyers who are purchasing home first time. The ratio of house price to
Illustration 2: House prices according to
Illustration 1: Average housing price index of London