Impact of COVID 19 on UK Housing Market

This article discusses the impact of COVID 19 on the housing market in the UK, including the decrease in prices and demand due to the pandemic. It also explores the government's actions and policies that have affected the housing market from 2009 to 2019.

UK HOUSING SALES
Contents
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Contents...........................................................................................................................................2
INRTODUCTION...........................................................................................................................3
QUESTION 1..................................................................................................................................3
How have the average house prices in UK changes over the period from 2009 to 2019?..........3
QUESTION 2..................................................................................................................................3
What are the economic determine of the changes.......................................................................3
QUESTION 3..................................................................................................................................3
How the government action affect UK housing market in 2009 to 2019....................................3
QUESTION 4..................................................................................................................................3
Impact of COVID 19 on UK housing market..............................................................................3
CONCLUSION................................................................................................................................3
REFRENCES...................................................................................................................................3
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INRTODUCTION
United Kingdom is the one of the developed counter and major part of world economy. This
is famous for their economic policy. The housing market play major part of the UK economy the
country earn venue from this market in national and international term. The report has been made
for defining the impact on government policy an heir deciding on the average price rate of the
UK. This report also includes the change in the past 11 years in the prices of UK house. In
consider the effect of COVID 19 pandemic on the housing market to negative and positive effect
and time require overcoming all the effect in space of manner.
QUESTION 1
How have the average house prices in UK changes over the period from 2009 to 2019?
Housing market: It defines as a market where the supply and demand of houses has been decided
and trade within specific country. Housing market is affect from many sectors and average house
price and trends in prices of houses are the main factors of this market. In the past 10 years
change there would be so many changes aeries within the market economy of UK, thus the
average price of hoses affected and change over the time period. (Cuéllar-Franca and Azapagic,
2014). In 2008 the UK housing average proc rate was 250000 £ before the recession but in 2008
due the changes in economic scale the price rate decrease it fall 19.6 %in 2009 the house prices
is 147746 UK dollar which is the lowest cost and in this period selling house and trade in the
market only gerante loss from the rate of houses. At the end of 200 9 the housing rate increase
and the value of hoses was 220000 $.In 2010 the government introduce new rule in the market
and it affect the market rate of houses from 1.3 %, at the time in 2100 the housing rate value
increase in the London at 25 % of average prices.. The price rate has been rise in 2011 from 0.9
% and at the end of 2011 the value of house was increase and annual growth rate also increase
1.5 %.In 2012 When London organizing Olympic games it directly affect the economy and their
GDP rate has been increase which affect the market price of house and average house prices
increase 1.4 5In 2013 the scene from trading in-house market has been developed by George
Osborn according to the scheme, the government provide offers related to mortgage interest they
give 5 % interns buying home (Clapham and et.al .2014). It increases the average value of the
houses. In 2014 with the changes of scheme dnlaunging new policies that value of average house
price was increase till 25 %.In 2015 with the changing in government, and scenario of economy
the average price of house rate decrees 3.2 %..The growth rate in the house price has been seen
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sicen2013, in 2016 the growth rate of the house rice was 5.7 % which is increase in 201 and
become 6. 7%. The average house price increasing 2018 and the value of house are me then
300000£. In 2019 after the Brixit aggrment announcement the economy has been change
suddenly and the interest rate of house in UK was the housing price rate has been decrease from
0.6 % but the average annual value the house was raise from 5 % and the value of average
house was recorded £250,677.
QUESTION 2
What are the economic determine of the changes
Housing market effect from the determinate of supply and demand sector over a the past 10
years changes comes in the house prices of UK economy is affect from the following factors
1. Interest rate: This is the rate at which the household give their payment. It is include by
the payment of mortgage on monthly basis. Higher interest rate will positively effect on
mortgage value but it reduce the demand of house .High interest rate is useful as it is
make attract and effect to rent business. But it reduce the demand of house in the market
of trade. The interest rate would be decreases after 2008 in UK but it increase since 2013
as the price of house will be increases. The interest rate will be increase in 2019 from 0.
5% and the value of house would be 227869
Economic growth: The demand of the house totally demand on the revenue rate and economic
growth rate of the country if the GDP value in increase then the demand and well as rate the
house is also increases. With the higher rate of growth it affect the income level of personals
as their level of living standard has-been change and also they invest on more on houses. At
the time of recession period when the growth rate goes down people lose their jobs and it
directly effect on their changing nature of expenditure. The recession period came in UK in
2008 at the year the demand of house goes down and the growth rate also decreases after
that in 2012, when the Olympic is organized, the revenue rate increase and GDP also
increases and it affect that the housing rate rise again since 2013 to 2019 (Jones, 2016).
a. Number of households: It also affect the value of housing rate higher number of
buyer will b increase the number of house value as the demand increase market
price raise. In 2009 to 2012 the number of buyers is not increase but after 2013
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when the condition goes in better way the number buyers of house and person
who took house as rent has been raised.
Availability of mortgagee: In 1996 to 2006 banks provide loan of the basis of mortgage to the
buyer. It help individual take loan of large amount .Banks are pride 100 &% of mortgage. But
which the change of time the sells has been change as their case raise of no performing asset and
the mortgage price are affect from it the mortgage rate has been raise from the past year which
affect the number of buyers of the housing industry.
Customer turns: Confidence and trust play vital role during the time en individual take any
mortgage. The rate of interest of customer is decreases during 2010 period of time.
2. New builds: The number of building new house also effete the rate of house market. In
2014 the number of house has been raised which directly affect the value of houses.
3. Supply rate of housing: It affect the demand the housing if the rate of sully ate of house
are high the it might be possibility demand get low but in some conditional where the
buyers need hose then they purchase at higher rate. 213 the supply rate has been
increases and it also increase the number of buyers and well as supplier in Britain.
4. Affordability of housing: It defines as the ratio required influencing the demand of
purchase house and trade within the house market. When the price of house has been
raise it become difficult to house sector to increases in house if their income ratio also
increases with the increment of price of house. In 2007 the ratio of housing price has
been increases as to the income level of personals it directly affect the purchasing
habits’ this stage the value of house is much experience thus personals demand has been
decreases due to it (Chandler and Disney, 2014).
5. Geographical factor: UK house market is also affect from its geographical factors. even
though the countries national price of house is decreases but the ere are some area in UK
where the price house rat will be increases. In London the hose rate goes high even in the
time of rescission period’s it is the decreases are and here the demand is high as compare
to supply f houses.
6. International trade: In countries the price are also affect with the foreign buyers as
investor invest in house UK from foreign country. These are directly affect the demand of
the house value if the Value and demand of foreign investor are high then the value of
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use has been increase likening 2015 the rate oh house as been increase as there will be
the demand f international investor has-been increases .
7. Unemployment: When the rate of unemployment has been raised then it may be
possibility that between people in house but when the rate of unemployment rate is
decreases it show that the income level of personal increase and people get opportunity to
find value job, increase the demand of house . The effect of recession period the rat of
house decreases as it was the period of unemployment. And in 2013 the rate has been
increase in Britain.
QUESTION 3
How the government action affect UK housing market in 2009 to 2019
Governments action and policies were directly affect on the housing market of the UK.
In 2008 after the recession period the government started new schemes after the rescission the
Department for Communities and Local Government decide to launch new scheme under which
new house are built for investor. It is face on removing waste project and fulfils the undercover
or unconstructed project. They also work on new house bonus under which o increase the
demand oh house the government priced offer and bonus will invest in housing market.
Then new buy scheme provide benefit to the investor who does not have enough money to buy
house their main motive is to encourage personal to invest in the house though high the GDP rate
of UK has been raised affect the reassign period and economic goes again on boom. They give
95 % on to the householders who invest and take 5 amount of house to the government. It help
in increases the number of household in the Britain and demand of the industry also has been
increase.
They also statement and deal with private financial initiative according to which the invest in the
house and they get financial assistant from private organizations. In 2014 the government launch
its new program EBBsfleet garden city which is esabiws build more than 1500 hose help in
investing the employment rate as well as GDP of the UK. (Evers, Miller, and Spangle, 2015).
Although the decision of Brixit aggrment will totally change the UK economy adversely affect
on the housing market. As the government take raw material an source from other European
countries who are the member of EU. After the UK decide to ex from the union the rate of
housing supply has been increase as it adversely affect h UK economy many of personals dose
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get unemployed in increases there will been o workforce to work and manufacture product as
well as it the rate of GDP goes down it direly effete the market price of house, rate of demand to
purchase house has been decreases and foreign investor is also decreases wise most of European
country members buy their house In UK for invest purpose as before the Brixit agreement they
don’t need though pay any tax or royalty to purchase house in UK but now affect the agreement
many duties tax and royalty has been arise to the countries thus the rate and demand of the house
has been decline .Britain the rate of house in London has been raise the market value of the
houses has been raise from 0.5 %in London. Government action directly affect on the housing
market there decision to not allow China from trade is also affect although to overcome all these
affect the government starting new program and schemes which help in increases the demand of
the housing sector as the government take revenue from this housing market. They also provide
employment to workers by engaged them in building and designing new housing deign and
project of build new houses. Government has positively and negatively effect on the market of
UK (Zheng Goh and Wen, 2020).
QUESTION 4
Impact of COVID 19 on UK housing market
At the present time the whole world is suffer from COVID 19 pandemic due to which many
countries take lockdown decision. INUK the government also lock down the world country as to
reduce the number of pandemic and control the spread of this pandemic will the country.
However it will direct impact on the economy of the UK and every sector of the country
specially housing market of UK. The county already face many problem and decrease in the
GDP as well as growth rate of the country and not due to COVID 19 the housing market will be
negatively affect on the market. Doe to all the house and parliament are not open since many
moths, the price are of the house market has been decrease the interest rate goes down. Price of
the houses in these month has been biggest fall since 11 years Due to this pandemic many people
lost their jobs, cutting wage rate, business get final personals lost job countries thus the rate and
demand of investing in house goes decreases . The market price rate of house decreases 1.7 %
which is largest decline rate of UK housing market is after the rescission period. That the
government of Britain has faces slow breeze and measure the slow spread of thus pandemic. The
middle class families of UK are not able to buy new houses and invest in the housing market. In
the starting of 2020 the interest rate is high but due to this pandemic everything goes reveres.
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There will be expectation selling any house in the upcoming 6 months as per the researcher. The
legacy related with the Covid 19 s that it take time of the economy to rebuild and come in again
in normal mode. For the upcoming 3 months the price are to raise and house into -38 %. The
price of the future in the house will total demand on how long the effect of this pandemic has
been taken as until all the thing get normal and business settle in normal routine it take 2 to 3
years to come back in normal economy again and to bear all the loss. Even the government of
the UK also have lots of problem and they have to mange and control the loss housing market
incurred use to the COVID 19 . Although research suggest that the pandemic will change the
perception and behaviour of the personals now people are not excited to live in big cities and
move forward to the big cities of country. Thus it will be change that in future the market price
of urban area house has been increase. Even all of these the government make police to rebuild
the market again and raise the investor and start new schemes which help in tract toward the
investor to trad4 in the housing market but the less the interest rate of for foreign investor to deal
in the housing market of UK. This pandemic will be adversely affect all the sector of economy
special housing sector and it take more time for the country to overcome the loss of the Covid 19
which are gerante and they face due to the CPVID 19 pandemic (Parry, 2020).
CONCLUSION
From the above analysis it has been identified that housing market is the market in which
trade in buying and selling of house. The house market is affect from the various elements of
demand and supply . UK is one of the major countries in the world. Since the past 11 year
various change have been comes due to resection changing in government policies in the housing
market of UK. Due to the recession the market average price rate goes down the government
made policies and impact of Olympic the rate again raise which the of new buyers, changing in
interest and mortgage rate, trend in market. But in 2018 Brixit aggrment and one the Covid 19
the country again suffer from the lowest interest rate the demand get down due the Covid 19 and
the effect of changing scenario government policy many personals lost job and interest rate of
loans goes high. And it may be possibility that in the upcoming 2 to 3 years the housing market
of UK will not be lead in boom stage as the COVID 19 pandemic adversely affect the whole
market.
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REFRENCES
Clapham, D., Mackie, P., Orford, S., Thomas, I. and Buckley, K., 2014. The housing pathways
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Jones, C., 2016. The credit crunch: short-term UK housing market correction or long-term
tipping point?. International Journal of Housing Policy, 16(1), pp.70-90.
Chandler, D. and Disney, R., 2014. The housing market in the United Kingdom: Effects of house
price volatility on households. Fiscal Studies, 35(3), pp.371-394.
Evers, L., Miller, H. and Spengel, C., 2015. Intellectual property box regimes: effective tax rates
and tax policy considerations. International Tax and Public Finance, 22(3), pp.502-530.
Kern, F., Kuzemko, C. and Mitchell, C., 2014. Measuring and explaining policy paradigm
change: the case of UK energy policy. Policy & politics, 42(4), pp.513-530.
Cuéllar-Franca, R. M. and Azapagic, A., 2014. Life cycle cost analysis of the UK housing
stock. The International Journal of Life Cycle Assessment, 19(1), pp.174-193.
Zheng, Y., Goh, E. and Wen, J., 2020. The effects of misleading media reports about COVID-19
on Chinese tourists’ mental health: a perspective article. Anatolia, 31(2), pp.337-340.
Parry, N. M., 2020. COVID-19 and pets: When pandemic meets panic. Forensic Science
International: Reports, p.100090.
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