UK Housing Market: Trends, Determinants, and Government Actions

UK housing market

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Evaluate average house prices in the UK changed over the period from 2009 – 2019...........1
2. What are the economic determinants of the changes...............................................................3
3. Government action over the period 2009-2019 which affected the UK Housing Market.......9
4. Predict what would be the impact of COVID-19 on UK Housing Market...........................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Economists and housing analysts foresee rates falling up to 13 percent across the UK, with
“brutal” falls in some regions as the property sector continue to recover throughout the COVID-
19 crisis. The array of the big researchers' predictions is considerably broader than average
(Begiazi and Katsiampa, 2019). At one extreme is the Centre for business and economics
Analysis, which forecasts that rates for 2020 will plunge by 13% "as a shortage of transactions,
high volatility and declining wages are taking their toll." However the property manager Savills
has said that the demand impact might be more like 5 percent, and a third of valuation surveyors
expect price losses might be restricted to 4 percent or less. This report is based on the UK
housing market and especially the Wembley London zone and impact on its price level. This
assessment covers the several topics such as average housing price in the UK throughout the
period of 2009 to 2019. Also evaluate the determinate which impact the change in housing
market price and evaluate the government actions which affect the UK housing market. In
addition, this report includes the impact of Covid-19 on UK housing market.
MAIN BODY
1. Evaluate average house prices in the UK changed over the period from 2009 – 2019
In the analysis of UK average housing prices are evaluated through House Price Index,
Scotland Registries, and Northern Ireland Land and Property Services residency sales figure. It is
analyzed by the National Statistics Office that applies index follow the mathematical approach
for different sources of data on property values and attributes to generate estimates of the rise in
real estate prices throughout the years and called a hedonic regression model. It is proposed that
the limited amount of selling purchases in other local authorities would result in volatility of fig
at these levels (Benbouzid, Mallick and Pilbeam, 2018). Geographies with small revenue
transactions should be examined in the perspective of their longer-term trends, rather than
relying on quarterly shifts.
London has experienced the fastest rates of rising house prices over the past decade-the
expected capital home has increased by 72 per percent-more than twice the overall UK house
price gain of 33.7 per cent. However the wealth has shown a marked downturn in recent years,
and house prices have dropped back from their high point in many areas of London.
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The declines are fairly low as calculated by the house price index, but brokers say that
houses are selling 5 to 10 per cent fewer than in 2015 to 2016. Below mention graph provide
better understanding of changes in the average price of UK properties.
Given the overall lack of expansion of the Retail economy in recent year consider the rise
over the past few years. This has also been due to Brexit and political instability, with less
international investors-either from overseas employees working in the United Kingdom.
Those looking to invest and local buyers and sellers are worried about entering a market whereby
they feel that house prices may collapse or that their house may not selling at a reasonable price;
Below data shows the average housing price of Wembley from February 2009 to February
2020 (Average Price of Properties of Wembley Location of UK, 2020). The graph shows the
fluctuation in the average price of UK housing market in the Wembley location.
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