Impact of COVID-19 on UK Housing Market

HND IN BUSINESS MANAGEMENT
(SALES MANAGEMENT)

Table of Contents
INTRODUCTION...........................................................................................................................3
1. How have average house prices in the UK changed over the period from 2009 - 2019?.......3
Q2. What are the economic determinants of the changes outlined?............................................4
3. Discuss about the government action over the period 2009-2019 affected the UK housing
market..........................................................................................................................................6
4. Predict that impact of COVID-19 on UK housing market......................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Housing market can be defined as a Marketplace where activities of buying and selling of
houses take place. Housing market in words one of the biggest non economic Investments. This
report will discuss about housing market of UK. UK housing market and its prices have
increased since past few years and report will discuss about changes in price of houses in UK.
Later the report will also discuss about economic determinants because of which price have
changed in UK. Economic determinants can be defined as forces of demand and supply and
some other factors affecting buying and selling of the house. Government also play important
role in regulating housing market and this report we discuss about actions of Government and
their impact on housing market of UK. As for now the world is facing the crisis because of
covid-19 this report will also discuss about impact of covid-19 on housing market of UK.
1. How have average house prices in the UK changed over the period from 2009 - 2019?
Inflation of houses helps to assess the rate of properties taken in the UK with a substantial
amount of rise or fall. It has a acronym HPI which stands for house price inflation. It work as a
joint venture by the registry of HM land, registers of Scotland, services for land and property of
Northern Ireland and National Statistics (Cuevas, 2018).
In July 2019 the country noticed a lowest increase in the prices of property since the year
2012. It is believed that on an average the price of a house goes up by almost 1 per cent in a year.
As per the estimates taken out the figure was around two hundred sixteen thousand British
pounds. The aspect of increase in prices for houses is not just limited to UK it is exclusive in
other countries of Europe too. According to the index of inflation it was from 2013 when the
prices of houses started increasing in the country (Nascimento Neto and Salinas, 2019). Even
after Brexit it will not stop rising it will increase with substantial amounts.
The average increase in prices of houses was from 0.9 per cent and from the last few
years it has been observed that the growth in the prices of housing in UK has slowed down which
has specifically taken place in the South and East of England. Among all it was London who
noticed a lowest rate of growth as there prices came down by 3.1 per cent (Jarvis and et.al.,
2020). It has been falling since the March of 2018. The average price of a house in UK was £