Housing Market Evaluation

Housing market evaluation

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
The ways in which average house prices in the UK changed over the period from 2009 – 2019
.....................................................................................................................................................1
The economic determinants of the changes for the average house prices in UK........................3
The ways in which government action over the period 2009-2019 affected the UK Housing
market..........................................................................................................................................6
Predictions for impact of COVID-19 on UK Housing Market....................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The housing market is a market place where the key element is the average price of the
products traded in that market. Housing market of United Kingdom is the major contributor in
the nation’s Gross domestic product (Best and Kleven, 2018). The main aim of this report is to
build an understanding regarding the demand and supply of the housing properties and how this
balance between these determinants determine the average prices in housing market.
In this report, four questions regarding housing market of UK has been answered. The
considerate time period for UK housing market is from 2009 to 2019. In this report, the
determinants due to which average prices of UK housing market has changed will be identified
along with the impact of government’s actions on the UK housing market. Lastly, in this report
impact of COVID 19 on housing market has also been predicted.
MAIN BODY
The ways in which average house prices in the UK changed over the period from 2009 – 2019
Housing market in United Kingdom is the market when people buy or sell houses with the
purpose of investment, rent out or residential. The average house prices in UK have been
changed immensely in the period of between 2009 to 2019. By considering these changes,
various patterns of the change are identified which reflects the ways in which the average house
prices in UK has changed. Some of these identified ways are analysed below:
Cost of housing – The first pattern which has been identified is the cost of housing. The
prices of the housing properties are continuously increasing in the period between 2009 to 2019
due to the increasing cost of these housing properties. The graph which is attached below shows
the prices of housing properties in UK and as it can be seen these prices are continuously
increasing due to various reasons which include inflation, interest rates, income status,
mortgages and many more. The increasing cost of housing properties in United Kingdom is the
way that justifies the increasing prices in housing market of this nation. It is clear from above
graph that in year 2009, the average price of housing property was 157234 pounds which
increased in as 232550 pounds in 2019. In some areas of United Kingdom, the prices of housing
properties are hiked to be twice in a mere period of 10 years (Baptista and et.al., 2016).
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