Evaluating Internal and External Business Environment

EVALUATING INTERNAL
AND EXTERNAL
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1. House Prices in the UK changed during the period 2009-2019...............................................3
2. Economic determinants of the changes which are outlined in the question number one........6
3. Analyze how the government action has influenced the UK Housing Market over a period
of 2009-2019................................................................................................................................9
4. Predict the impact of COVID-19 on UK Housing Market....................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..........................................................................................................................................14

INTRODUCTION
Internal Environment refers as culture, members, factors and events which are present
within the organization, it has ability to influence the decision making of the organization.
External Environment refers as factors which are outside the control of the business and hard to
predict. The assignment is based on Housing Market of UK over the last 10 years. The housing
Market refers as demand and supply of the houses usually in particular region or country. The
key element of Housing Market is average housing prices.
The report will explain how the average prices changes in housing sector of UK between
the periods 2009 to 2019. Furthermore, the study will determine what are the economic
determinates which are affecting the house prices in UK. It will analyze how government actions
have affected the Housing Market over the period 2009 to 2019. Lastly, the study will predict the
impact of COVID-19 on Housing Market of UK.
TASK
1. House Prices in the UK changed during the period 2009-2019
UK Housing Market has grown in last decades (Best and Kleven, 2018). House price in UK is
generally high because the demand is high than the supply. Types of housing tenure in UK are -
 Homeownership - Either through mortgage or outright.
 Private renters – It is the renting through private landlords.
 Social renters - These are the people who rent through housing associations and local
authorities.
There is slow down in house price inflation since the Brexit referendum. House price
inflation refers as a rate in which residential properties are purchased in United Kingdom may
fall or rises. In the year 2009 there is reduction in interest rate to 0.5% which leads to lower
mortgage payments (Guren, Krishnamurthy and McQuade, 2018). In the year 2009 the UK house
price is £149,709 whereas real house price is £206,688. In quarter second from April to June
2009 it has recorded as £154,066 and real house price was £211,002. The house price was
tremendously growing to £162,887 in first quarter of 2010. The real house price in 2010 was

£216,267. In 2012 it was £162,924 in last quarter whereas real house price was £192,838 that is
decrease in comparison to 2009. The average house price in UK was 229,000 pounds in April
2019 which was 3000 pounds higher than in April 2018. As per the seasonal adjustment basis the
average prices in United Kingdom was decreased to 0.2% during March to April 2019. In Wales
the House price is increased to 6.7% from March 2019 to April 2019. The average price of house
was recorded in Wales as £164,000 in 2019.
Figure 1 House price Inflation (Source: UK Housing Market, 2020)
The average house price in 2016 is £198,564 and in 2019 it is noted as £215,925. There is
increased of 17,361 in just 4 years (UK House Price Index, 2019). On June 2019 the average
house prices is increased by 0.9%. In London has annual growth of house prices is fallen by
2.7%. The average house price is increased by 0.1% from May 2018 to June 2019. In June 2019
the average price of UK houses was noted as £230,000 but in August 2018 this figure is higher
and average price was £232,000.