BUSINESS 3 ECONOMICS FOR BUSINESS Economics for business Name of the university: The University: UK

Running head: ECONOMICS FOR BUSINESS
Economics for business
Name of the student:
Name of the university:
Author note

1ECONOMICS FOR BUSINESS
Executive summary:
United Kingdom is one of the developed nations in the world that has evolved itself through
considerable amount of market orientation in its economy since last two centuries. With raise
in the economic growth of the nation, christened through the industrial revolution of 18th
century, UK has faced enhanced pressure in its industrial sector. Rise in population through
backhand effect guided the economy to have better scope to withstand in the competitive
world. This report is aimed to discuss the various factors that have affected the UK housing
sector. In addition to this, this report is targeted to discuss the effect of the recent housing
policy initiatives by the UK government in order to enhance the welfare level of the country’s
residential. Through detailed analysis of the UK housing market it has been found that
various influential factors are there that has caused the fluctuation in the UK housing market.
One of the major factors that have caused the recent fluctuation in the UK housing market is
the rise in housing price in the country over the various regions. Amalgamation of the rise in
demand leading to price rise of the houses in the country has caused the fluctuation; however
several governmental policies have eased the situation. To conclude, it can be stated that over
the time there has been various fluctuation in the UK housing market, and it has to some
extent enhanced the welfare level through government housing policies; however whether it
has totally attained the desired outcome or not, it is subjective.

2ECONOMICS FOR BUSINESS
Table of Contents
Introduction:...............................................................................................................................3
Determinant factors of price of house in UK from 2006 to 2016:.............................................4
GDP growth rate:...................................................................................................................4
Unemployment rate:...............................................................................................................5
Interest rate:............................................................................................................................7
Consumer confidence:............................................................................................................8
Affordability range:................................................................................................................9
Demand of the houses:...........................................................................................................9
Impact of governmental schemes on housing market in UK:..................................................11
Help to Buy:.........................................................................................................................11
Shared ownership:................................................................................................................12
Starter Homes:......................................................................................................................12
Conclusion:..............................................................................................................................13
References:...............................................................................................................................15

3ECONOMICS FOR BUSINESS
Introduction:
United Kingdom is one of the developed nations in the world that has evolved itself
through considerable amount of market orientation in its economy since last two centuries.
According to the nominal GDP growth the country stands as the sixth largest economy and
when the Purchasing Power Parity is considered, then the economy is the ninth largest in the
world (Taylor 2016). Higher economic growth over the period of the nation has been
germinated through periodical development of the country’s infrastructural development
leading it towards the sustainability. Over the year the nation has faced immense
development leading it to become the second largest economy in the European Union (EU)
that has aided the UK to become where it is now. This immense growth in the UK economy
has helped the nation to curtail various macroeconomic variables, which has provided it
required sustainability and growth prospect (Spash 2014).
With raise in the economic growth of the nation, christened through the industrial
revolution of 18th century, UK has faced enhanced pressure in its industrial sector (Burawoy
2015). In addition to this economic prosperity of the country has provided it an upward rise in
the population of the country. Rise in population through backhand effect guided the
economy to have better scope to withstand in the competitive world. One of the major factors
that have aided the country to become where it is now is the changing dynamics in the
housing sector (Wilcox and Perry 2014). It has acted as the stimuli for the economic growth
of the country. Over the time, there has been immense amount of fluctuation in the housing
sector of the UK; however, a vast amount of fluctuation can be observed during the 2006 to
2016 session. Considering this scenario, this report is aimed to discuss the various factors that
have affected the UK housing sector. In addition to this, this report is targeted to discuss the
effect of the recent housing policy initiatives by the UK government in order to enhance the
welfare level of the country’s residential.