Change in UK Housing Prices: 2009-2019

CONTEMPORARY
BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Change in housing prices in UK over the period of 2009 to 2019..........................................3
2. Economic determinants affecting the average housing prices in UK......................................5
3. Government action taken.........................................................................................................8
4. Impact of Covid- 19 on UK housing market...........................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
The housing market is the supply and demand of houses in a particular region which is
majorly determined by average house prices and the trends in the market. A housing market is
affected by supply, demand, rented sector, housing prices and government intervention. The
housing market of UK is volatile in nature. This report will highlight the change in the average
house prices in UK over a period of 2009 – 2019 and the economic determinants responsible for
these prices. The action of the government over this period is described and a prediction of
impact of Covid-19 on the housing market is determined.
MAIN BODY
1. Change in housing prices in UK over the period of 2009 to 2019
The real estate and housing in particular has always been an interesting sector of
investment as well as trading for people of UK (Antonakakis and Floros, 2016). The lucrative
and secured earning that the real estate and housing market of UK provides is the major point of
attraction for the people.
Figure 1: Change in UK housing prices
Source: UK Housing Market, 2020
The graph above indicates that the prices have steadily increased from the year 2010 to
2020 in the housing sector where every year has seen a rise in the prices collectively. The graph
indicates that in each year, there has been a rise irrespective of the fact that whether the prices
have risen by a higher percentage or by a lower percentage. The year 20196 can be seen as the

one with the highest level of growth at 21200 points where in the year 2010 it was just at 14992
points. The highest cumulative e growth was between the years 2017 and 2018 where the prices
almost increased by approximately 100 basis points (UK Housing Market, 2020). The graph also
shows that 2020 is the year when the prices are expected to show a cumulative decline and this is
mainly due to the fact that the Covid- 19 pandemic and the global lockdown that was
implemented has affected the economy severely and due to this, the overall decline in the prices
is prominent. Another graph can be used to further analyse the different trends in the housing
market of UK:
Figure 2: Trends in the housing market of UK
Source: 12-month percentage change in house prices in the United Kingdom from July 2007 to
July 2019, 2020
The figure above depicts the percentage change in the housing prices over the period of
12 months every year from 2007 to 2019. The fluctuation in the overall prices of housing in UK
is prominent as movement is not consistent over the years. It can be clearly observed that while
in almost all of the years the prices have shown an increasing trend on the monthly basis in a
year, the year 2008 saw an exceptional decline in the overall prices. Another year in which the