Impact of Economic Determinants on UK Housing Industry

This article examines the impact of economic determinants on the housing industry in the UK, including changes in demand and supply, fluctuations in economic growth, and government interventions. It discusses the factors influencing house prices and the affordability of housing. The article also explores initiatives and plans implemented by the government to address the housing crisis and increase housing supply.

Ayoade, O. and Ahmed, V., 2019. An assessment of industry position on shared equity
housing model development in the UK. International Journal of Qualitative Research
in Services, 3(2), pp.107-124.
It is observed that there is change in up and down of demand and supply in houses. It is due to
certain change in economic growth and action taken by government. But in recent times demand
is very low. In UK there are many businesses which is engaged in this sector and offer different
types of house. Basically, the price of houses depends on many aspects that are market condition,
prices set by government, demand etc these all are useful in setting of prices in housing sector.
The price changes when there is fluctuate in economic growth.
Gupta, R. and Kapsali, M., 2016. Evaluating the ‘as-built’performance of an eco-housing
development in the UK. Building Services Engineering Research and
Technology, 37(2), pp.220-242.
There are many external and internal factor which highly affect on growth of industry. These
factors needs to be identified so that strategies are developed according. Also, external factors
are not controlled and is directly related to industry. It is determined that when there is change in
demand and supply of product within an industry it is due to some economic determinant. This is
because industry demand is dependent on economic growth. If there is rise growth then demand

increases and vice versa. Also, it is found that housing supply has increased in UK from 2015. It
has risen to 40% in total time period. It has been resulted in fulfilling demand in Urban areas
where rate of house is high. There is change in economic drift as well where demand of house
has arisen but not at high level.
Guy, S. and Karvonen, A., 2016. District Heating Comes to Ecotown: Zero-Carbon
Housing and the Rescaling of UK Energy Provision. Beyond the networked city:
Infrastructure reconfigurations and urban change in the North and South, pp.72-93.
The cost of renting has increased and enabled people to buy house by taking mortgage. The
change in cost of renting depends on how much mortgage loan is available and to what extent
people are able to pay rent of house. Thus , it is found that there is steady decline in avg price.
This is due to change in time and low demand of house. Besides that economic condition of UK
is not stable since 5 years. It is due to issue of Brexit due to which housing sector demand is low.
In addition to it, average price of House increased.

Hopkin, T., Lu, S.L.. and Sexton, M., 2017. Key stakeholders’ perspectives towards UK
new-build housing defects. International Journal of Building Pathology and
Adaptation.
It is evaluated that these are certain economic determinant due to which in housing industry the
demand and supply was affected and it led to change in average price of house in UK. Besides
that, government intervention of banking act 1983 and housing act 1983 has impacted on
affordability. It has resulted in increase in demand of house as local ownership is increased.. The
house buy scheme allows tenants to borrow 25% of value of house as interest free loan. Hence, it
has resulted in increase in demand of house.
Karvonen, A., 2017. Community housing retrofit in the UK and the civics of energy
consumption. Retrofitting Cities for Tomorrow's World, p.19.

The growth of the market is completely stopped and there is no change since the starting of the
year. National and international market is facing high uncertainty on regular basis is which is a
crisis situation for the market place. In 2015 UK government took few initiative in order to
secure housing sector. It stated that they will deliver 1 million homes in 2020 and .5 million
more in 2022
Single department plan 2019- The plan stated that increase housing supply to 300000 house in a
year. In addition to it, plan ensure increase of house on area where there is need. Also, it brought
local authority together to ensure smooth planning and taking effective decision. Moreover, to
open the industry for small builders so that they are able to provide innovative ideas in
construction and provide houses at affordable prices. The plan supported local community to
increase supply of houses under affordable house programme.
Supply and demand measure- it has ensured by government that there is both demand and supply
of affordable house. The focus in to increase ownership of houses. Thus, an initiative is taken of
forming a national planning policy. It is a framework in which provision are done to ensure at
least 10% houses are available under affordable house ownership. A scheme was launched by
government for first time buyers
Maclennan, D. and Miao, T., 2017. Transformative transfers: growing capacities in UK
social housing.
Housing market have to make various changes in the house construction process due to the
changes that are result of the pandemic. These challenges are related to the protections that are
need to be considered to reduce spread of infection. Most of the changes that are occurred in the
housing market are mainly related to the changes in the lifestyle of the people because of the
pandemic. This pandemic has forces the people to make various changes in their lifestyle.
Housing market have to make various changes in the house construction process due to the
changes that are result of the pandemic. These challenges are related to the protections that are
need to be considered to reduce spread of infection. It has forced the people to implement certain
changes in their lifestyle. These changes has forces to the housing industry to implement various
changes in the design and construction process of the houses. The growth of the market is
completely stopped and there is no change since the starting of the year.