The Irish and UK Housing Market and Inflation

The Irish and UK housing market
and inflation
Introduction
Some products across the world have been having dynamic market with their prices appreciating
with time whereas other have been experiencing low market as their prices depreciate with time
thus their values rated low. For instance, the price of a piece of land is ever on the rise whereas
on the other hand the price of products like vehicles depreciate due to wear and tear as they are
put to use. Real estate business has been lucrative to many people and several people have been
venturing into it for years across the world (Haslam et al, 2015). The business involves buying
and selling of land, building, buying and selling of property and resulting to growth in real estate
economy (Squires and Heurkens, 2014). It can as well be referred to as housing market though
not commonly used term in the field instead real estate has been dominant term instead.
The purpose of this report was to determine the housing market and inflation in the UK. Inflation
is the general rise and fall in the purchasing value of money (Hansen, 2016). This sparked
curiosity to explore the activities in the entire real estate business (housing market). Assessing
the real estate business would result to mastering the challenges and finding ways of overcoming
the challenges and also making informed decisions in case one is to venture into the business.
The information from this report will be helpful for investors who would like to invest in housing
market in the Irish and UK. Though inflation have been affecting all forms of businesses, the
housing market is not exceptional to that. Objectives that were met in this report were as follows;

Specific objectives
1. To determine the correlation in the mean dwelling house prices in the UK
2. To determine the mean difference between first time buyers price and former owner
occupiers price in the UK
Research questions
1. Is there correlation in the mean dwelling house prices in the UK?
2. It there mean difference between the first time buyers’ price and the former owner
occupiers’ price in the UK?
Data sources
Data that was used in this report was secondary data obtained from the Office for National
Statistics for the house price simple averages. The data covered quarterly averages from the year
1992 to the year 2018 on the housing market covering simple average house price, mortgage
advances and incomes of borrowers by new or other dwellings, type of buyer and region in the
United Kingdom. The data was collected to investigate on the UK housing market and inflation.
The collected data were averaged quarterly for each year across all the years covered by the data.
For simplicity and easy access for use, the data was downloaded in excel file (.xls) since Excel
was to be used to analyze the data. The (.xls) data file was preferred over (.csv) since it did not
require any form of conversion in the file format unlike when (.csv) file was used.

Data analysis
The collected data were presented in tables and graphs as follows:
Data Frequencies
Table 1: Class mean of all dwellings price
All dwelling Percent %
46000-69941 14.81481
69941-93582 14.81481
93582-117223 7.407407
117223-140865 3.703704
140865-164506 3.703704
164506-188147 3.703704
188147-211789 7.407407
211789-235430 11.11111
235430-259071 14.81481
259071-282713 18.51852
total 100
Figure 1: Histogram for All dwelling price
46000-
69941 69941-
93582 93582-
117223 117223-
140865 140865-
164506 164506-
188147 188147-
211789 211789-
235430 235430-
259071 259071-
282713
0
2
4
6
8
10
12
14
16
18
20
Histogram for All dwelling price
All dwelling price (in pounds)
Percent %
All dwelling price was presented in a graph out of which 14.8% represented the mean house
prices in the range of 46000 – 69941£, another 14.8% represented the price range of 69941 -
93582£, 7.4% represented the dwelling price of 93582 - 117223£, 3.7% represented dwelling
price of the range 117223 – 140865£, 140865 – 164506£ and 164506 - 188147£ respectively.