Contemporary Business Environment: UK Housing Market Analysis

CONTEMPORARY
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASKS........................................................................................................................................................3
1. House prices in the United Kingdom changed over the period between 2009-2019............................3
2. Economic determinants of the changes in housing prices....................................................................7
3. How the UK Housing market has been affected by the actions taken by government over a period of
2009-2019..............................................................................................................................................10
4. Determine the impact of CVOID-19 on the UK Housing Market......................................................11
CONCLUSION.........................................................................................................................................13
REFERENCES..........................................................................................................................................14

INTRODUCTION
Evaluation of external and internal business environment is important for housing sector.
Housing Internal environment means the factors that affect the organization of the company or
sector on internal basis (Čepel, Stasiukynas and Dvorský, 2018). It includes organization
structure, culture and management structure. External environment means the political
microeconomic technological and social factors that influence a organization or industry.
Housing market defines as the demand and supply for houses in a particular region or country. It
is associated with average price of houses and trends in prices of house. The report will evaluate
the housing market of UK over the period of 2009-2019. It will explain economic determinants
of changes which is outlined in prior question. Furthermore, it will evaluate the government
actions in the period from 2009 till 2019. Then, it will explain the impact of COVID-19 on the
United Kingdom housing market. Lastly, brief summary will be given.
TASKS
1. House prices in the United Kingdom changed over the period between 2009-2019
House price is affected by various factors such as demand, supply and mortgage rates. House
price increased when the demand exceed supply (BaptistaFarmer and Uluc, 2016). The highest
average price of house is in UK. The average pricing of house in United Kingdom from 2009 to
2019 is as follows -
 Cost of housing - In the starting of the 2009 the lowest price of house in UK is
determined 157.2000 British pounds in an average. In the beginning of 2013 house price
has increased on quarterly basis. The prices get boosted around 9% between the years
2013 to 2014. The average house price is noted as 230.3 thousand pounds in February
2020.
 Cost of Renting - It is for the person who don't own house or is not interested to
purchase a house of their own. They have alternative to buy home at rent. The demand of
real estate is high in UK. The residential property market is being growing. The renting is
becoming more affordable than purchasing own house.

Figure 1 Annual house price rates in UK (Source: UK House Price Index, 2019)
The average price residential property has increased by 1.1% in year 2019 till the July
first quarter. It is reaching estimate value of 216000 British pounds in second quarter of year
2019. The lowest annual increase is seen since from the year 2012. The houses become more
expensive from the year 2013 in Ireland, Denmark, Germany and Netherlands. This trend is
come from European phenomenon. The residential property in UK is not expected for becoming
cheaper (Xuesong, 2018). It is estimated that residential price will further grow in upcoming
years as the government started refocusing on the issues of domestic after the Brexit. The
average prices of house in United Kingdom have been increased to 0.9% till the June 2019.