Impact of Financial Crisis on UK Housing Market

Contemporary
Business Environment
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
1 Change in average house price in UK over period of 2009-2019............................................3
2 Economic Determinate of Changes in housing market in UK.................................................4
3 Impact of Financial Crisis on UK Housing Market..................................................................7
4 Impact of Coronavirus (COVID-19) on UK Housing Markets................................................8
CONCLUSION................................................................................................................................9
REFERENCE................................................................................................................................10
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INTRODUCTION
Contemporary business environment refers to such environment that keep on changing thus
enterprise that are working in such industry need to know about various changes and
development in external environment in order to sustain and grow within particular industry. UK
housing market has rapidly changed during previous 10 years so various enterprise needs to
evaluate such external changes for effective growth and expansion of business in the industry.
The report has discussed about average house price in UK changed over period of 2009-2019
and various economic determinants of change made. It also analysis impact of government action
and COVID-19 on UK housing market sector so that various strategise can be formulated by
companies to gain competitive advantages.
1 Change in average house price in UK over period of 2009-2019
It can be stated that there had been constantly increase in average house price in UK as per
data of 2019. It have been analysed that prices of house have been raised from 1.3% in October
to 22% in November 2019. West midland and North West are major areas of England that where
sufficient increase in prices of house have been noticed (Dorling, 2019). Therefore it can be
stated that average price of house in Wales is £173,000 that means 7.8% increment in prices of
house in 2019. On the other hand £251,000 in England and £140,000 in Northern Ireland thus
such rapid changes in price of house has provide opportunities to enterprise to start business of
house to earn maximum profit. It have been noticed that over many years before 2019 there was
slowdown in growth of house pricing, especially in east and south of England. In November
2019 east of England have lowest annual growth rate that is approximately 0.7% (UK House
Price Index: November, 2019). Therefore it can be illustrated that housing price in UK have been
decreasing since 2016 but suddenly it had increased in 2019 due to various reason. Average
house price in UK has increased from £230,000 in November 2018 to £235,000 November 2019
thus on non seasonal period price of house have been increased to 0.4% whereas in it is 0.6%
between October and November in 2019. Thus, price of house have been increased since 2019
with large volume of transaction and higher month growth. Residential property has showed
lowest annual increase in price of house in 2012 that can be estimated as 157.2 thousand British
pounds, whereas as per 2013 average house price have been increased on quarterly basis. There
are various changes in price of house since 2009-2019 so thus it has adversely impacted on
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