Impact of COVID-19 on UK Housing Market

Report
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
How have average house prices in the UK changed over the period from 2009 - 2019?...........3
TASK 2............................................................................................................................................6
What are the economic determinants of the changes outlined in your answer to Question 1?. . .6
TASK 3............................................................................................................................................8
How has government action over the period 2009-2019 affected the UK Housing market?......8
TASK 4............................................................................................................................................9
Predict what would be the impact of COVID-19 on UK Housing Market?................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Contemporary business environment are enhancing competitively as well as dynamically.
The main reason behind this fact is that it is changing at fast pace and also there are modification
into new concepts. It means that firms have to understand the requirements and development and
perform their business accordingly (Antonakakis and Floros, 2016). The main objective of this
report is to evaluate the UK housing market over last ten years. This report is based on UK
housing market which includes supply of housing, demand of housing, prices of house, rented
sector and intervention of government into housing market. This report covers the average house
price that changes over the period, economic determinants respective changes and government
action over that period. Along with this, prediction related to COVID-19 impact upon housing
market is also discussed in this report.
MAIN BODY
TASK 1
How have average house prices in the UK changed over the period from 2009 - 2019?
Housing market is considered as the demand and supply for houses mainly into specific
country. Its key elements are average house prices as well as trend in house prices. Moreover, it
includes some features such as demand for housing, supply of housing, prices of houses,
government intervention, rented sector and others (Arundel, 2017). Along with this, UK housing
market has few features like it is volatile due to several factors, has influences upon wider
economy such as when prices of houses are declining, customers spending trends are also
reducing. As it influences the economy and individuals’ homeowners so it is essential for them
to predict the future movements.
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House prices are impacted through various factors like mortgage rates, demand and
supply upon marketplace. In case demand outweighs supply then prices of houses are likely to
enhance. The United Kingdom has few of the highest average house prices into Europe. As per
the report of Statista Research Department, at the beginning of 2009 it has been seen that the
lowest prices for houses within United Kingdom with an average of 157.2 thousand British
pounds. Since in January 2013, the average prices of houses have been enhancing on quarterly
basis. The huge change into the prices of house is between year 2013 and 2014when house price
enhanced with about 9 % (Factors affect on house price,. 2020). Moreover, for those who are not
owned any house or presently are buying a home with mortgage and an alternative method used
to purchasing houses is renting, something that is specifically prevalent for large cities in which
demand for affordable residential are higher.
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