Evaluating UK Housing Crisis: Covid-19 Pandemic and Brexit Impact

This essay examines the UK housing crisis in the context of the Covid-19 pandemic and Brexit. It highlights the lack of accessibility to housing, trade restrictions, and operational interruptions as key factors. The essay discusses government strategies such as public debt management, taxation, and securing property rights to mitigate the crisis. It also addresses the challenges in construction activities, skilled labor access, and contractual risks. The essay concludes that government expenditures and effective planning systems are crucial for reviving the housing sector and improving the economic condition of the UK, emphasizing the need for affordable housing and sustainable growth. Desklib offers similar essays and resources for students.

COURSEWORK

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
UK housing crisis in the light of the recent impact of the Covid-19 pandemic and Brexit.........3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Housing sector is one of those industries where properties are been construction,
development and sale of homes to the population. It is a market which is related to demand for
houses directly by the buyers or supply with the help of real estate brokers. It is a common
necessity and is a vital part of any economy in the world and coves a huge amount of share in the
growth of a country. It is a major contributor to income and employment generation in the
economy of many countries in the world. The current essay will explain UK housing crisis with
the recent impacts of Covid-19 pandemic and Brexit.
MAIN BODY
UK housing crisis in the light of the recent impact of the Covid-19 pandemic and Brexit
The biggest reason behind housing crisis in the United Kingdom is lack of accessibility in
the context of purchasing a house as people are unable to conduct this practice, especially those
who may exist from UK and enter into EU as the outcome of Brexit (Beswick, 2020). It is one
of those external factors that may put negative impact on the procedure of house purchase and
selling. It may have a major contribution towards this situation as it may be one of the major
risks that may be faced by the housing industry. The trade restriction implied after it may have a
negative impact on the housing industry due to the less accessibility of raw material and
resources that may be crucial for construction and other practices. It may have led to a rise in
their prices which also may be the reason for a decrease in houses available in the UK.
Covid-19 is the other factor which may have a significant impact on the housing sector as
it may have experience a total interruption in the operations and low rent collection for the
landlords. It may have been the main reason for changes in the ways of doing housing business
in the recent times. British government may have found difficulties in managing these changes
due to the complexity of these phenomenons which may also be leading to losses for the
industry. It may be a major factor in increasing economic problems for individuals as there may
be inflation going on all over the world. The prices of basic requirements is very high and
housing on the other hand is an expensive need to fulfil which is a big problem for the population
of UK.
States may get the required funds from the centre of UK which may support them to
improve the recent condition and enhance the structure of the housing industry. It may be
beneficial for the sector to get a positive output from the current situation and improve its

existing framework. The states may also be able to grab funding from independent investors who
want to increase their business and help in creating more opportunities for the industry. The
activity level may help in reducing the impact of Covid-19 and the Brexit effects on the industry
(Bisciari, 2019). The governments may transfer public obligations which may increase the rates
of taxation in order to collect more money from the population. It may help in allocating the
useful resources in order to reduce impact of the recent situation. Government may owe public
debt in different forms of bills, bonds and notes for specified payments at required times.
Acquiring funding may be a difficult task in the current times people may not invest willingly in
the recent times. The housing crisis may continue to negatively impact the market and reduce
economy of the country.
It may create problems in managing public debt and assets due to dynamic nature of the
business environment in the recent times. Public debt may be used in order to finance a deficit
budget which one of the critical features in the capital markets. Various governments may be
active in the financial markets through regulatory powers for controlling housing activities
(Bloom and et.al., 2019). By creating subsidies and taxing from the public to invest in the
housing industry and improving its current state which is necessary in order to achieve growth in
the economy. They may find it difficult in the pandemic times as people may be suffering from
loss of crucial resources and it might be difficult to focus on the specific industry. These efforts
may help in resolving the current crisis and uplifting the economy. Banks may have played a
significant role in the process and may have contributed towards recovery of damage that may be
done by the pandemic on the housing marketing of the state. The situation may have led to
requirement of a lot of waivers in respect of financial markets (Bloom and et.al., 2020).
Borrowers who suffer further may find it a lot harder to restrain from their lenders in order to
gain further capital to support their assets.
The fundamental reason for property rights may help in eliminating destructive
competition for controlling the economic resources. It may create an environment of peace where
the property rights of individuals and industries are secured and no one can claim it against their
will (Wilkins, 2018). These rights of property ownership may be extended with the help of
copyrights and patents in order to secure the physical resources such as houses which have been
scarce due to the current scenario. The protection of these rights may have a significant
contribution towards creating incentives which may lead to economic growth and prosperity for

the UK. If the property rights are insecure they may create fewer opportunities for the poor
which may be difficult for them to manage their housing needs. Protection of property rights may
be crucial for growth and development of the economy and may be a major contributor to the
government to progress.
Central government may put efforts in order to secure these rights of the people in order
to provide benefits to people with less income to survive the effects of the Covid-19 and get
access to housing. It may be required in order to improve economic condition to bring stability in
the lives of people. The increase of government expenditures may be a major factor in the
economic growth as it may cause a rise in the aggregate demand (Chopin and Lequesne, 2021).
When the spending is focused on development of infrastructure it may lead to increase
productivity and long run aggregate supply in the housing sector. The efforts towards reducing
the negative impacts of pandemic may require a huge expenditure from the government which
may help in development of housing sector. It may help in managing the financing of the
industry and a proper management of the crucial tasks which are important in improving the
current effects of the conditions (Vandenbussche, Connell and Simons, 2019). It may have a
negative impact on economy of the country as the sector might face several challenges which
may be not beneficial for the country to grow and prosper.
Government expenditures may be helpful to revive the housing industry and increase the
creating more jobs and providing the contractors with more opportunities to expand their
services and gain more profit. It may be beneficial for the area to grow and prosper due to the
efforts of government towards development of the sector. It may reduce the effect of these
factors from the sector and may help in betterment of the housing industry (Luger, 2021). The
small and large organizations which may get benefited with the help of these efforts from the
government and it may have a positive effect on them.
Construction activities in the UK may suffer due to the Brexit and Covid-19 pandemic
due to the disruption in the supply chain and unavailability of resources and capital. It may have
a negative impact on the housing sector by reducing the sales and management of the sector. Due
to less construction of new houses there may be increase in problem of unavailability of housing
for many people in UK (Nazir and et.al., 2020). It may be a major problem for the government
due to fewer profits and income from the housing sector. It may be difficult for the country to
recruit labour construction of houses and apartments in the current situation.

UK housing crisis may arise due to the unavailability of affordable housing in the
country. It may be a major reason for scarcity of less priced homes which may result in fewer
people able to buy a house in the country. Both factors may strongly affect the current situation.
There may be difficulties to access skilled labour for EU countries due to long processes for
travel and visa accommodation which may have a negative impact on the housing industry
(Ntounis and et.al., 2021). The pandemic may have caused risk situations for contractual terms in
the UK may have a rise currently. It may not benefit the housing market and be a major reason
for disruption in the supply chain of construction department. It may reduce profits earned by the
government from this particular industry and may result in loss of homes for many people
around the country. The governments may give high consideration to the sector by preparing
effective strategies to combat these functions (Sander, 2019). It may be resourceful for the
development of new and affordable houses in the country where the poor may also be able to
have access to buy homes. It may be a major contribution to the country's economy and boost the
buying capacity of many people.
The new and affordable houses in the nation are in a huge demand and the government
may highly focus on developing the infrastructure in order to fulfil the housing needs of
individuals. The pandemic and Brexit have been a major contributor to the issue may be deeply
considered by the government of the state to improve current situation of the country. Politics in
the UK may be a major barrier for this step to successfully take place and the people at
respectable places in the government may have to take strong initiatives in order to resolve the
problem from its roots (Slater, 2018). A proper planning system to nullify the effects of these
phenomenons on the industry may be considered in order to tackle the challenges that may arise
in the process. This system may involve making effective strategies for the development of the
housing sector amid the pandemic which may be beneficial for the industry to grow and
contribute towards increasing the economy of the nation.
All these practices may be only successful with the help of a fair supervision from the
management that may be related in the development of the plans to decrease the effect of these
factors on the housing industry. The sourcing of raw material, recruitment of skilled and
unskilled labour, land costs etc. all should be fairly calculated in order to get the most out of the
efforts that may be put by the government towards reviving the housing sector (Stuart and et.al.,
2021). It may be beneficial for the population to afford homes and live a better life in the tough

times of Covid-19. It may be helpful in increasing the employment and sustainability in the
country which may have a positive impact on the economy of the nation. It may result in increase
of opportunities for the citizens and the government to raise funding from potential investors.
CONCLUSION
On the basis of the above essay it has been concluded that the housing sector in UK may
face challenges due to the Brexit and Covid-19 pandemic. Various steps and expenditures by
government has been beneficial in securing property rights of individuals and improving the
economic condition of the UK. These efforts of government towards developing the current
situation of economic crisis in the UK have been beneficial in uplifting the industry and
providing jobs to many people from around the world. It has been resourceful in reducing impact
of these factors on the current important stakeholders which are related to the particular industry.

REFERENCES
Books and journals
Beswick, K., 2020. Housing, performance and activism: thinking with performance in times of
crisis. Studies in Theatre and Performance. 40(1). pp.1-7.
Bisciari, P., 2019. A survey of the long-term impact of Brexit on the UK and the EU27
economies.
Bloom, N. and et.al., 2019. The impact of Brexit on UK firms (No. w26218). National Bureau of
Economic Research.
Bloom, N. and et.al., 2020. The impact of Covid-19 on productivity (No. w28233). National
Bureau of Economic Research.
Chopin, T. and Lequesne, C., 2021. Disintegration reversed: Brexit and the cohesiveness of the
EU27. Journal of Contemporary European Studies. 29(3). pp.419-431.
Luger, J., 2021. Book review: Potts, Deborah. 2020: Broken Cities: Inside the Global Housing
Crisis.
Nazir, F.A. and et.al., 2020. Comparison of modular and traditional UK housing construction: A
bibliometric analysis. Journal of Engineering, Design and Technology.
Ntounis, N. and et.al., 2021. Tourism and Hospitality industry resilience during the Covid-19
pandemic: Evidence from England. Current Issues in Tourism, pp.1-14.
Sander, M., 2019. Behind the housing crisis. Property Journal, pp.48-50.
Slater, T., 2018. The invention of the ‘sink estate’: Consequential categorisation and the UK
housing crisis. The Sociological Review. 66(4). pp.877-897.
Stuart, M. and et.al., 2021. COVID‐19 and the uncertain future of HRM: Furlough, job retention
and reform. Human Resource Management Journal. 31(4). pp.904-917.
Vandenbussche, H., Connell, W. and Simons, W., 2019. Global value chains, trade shocks and
jobs: An application to Brexit. The World Economy.
Wilkins, T., 2018. Assessing the UK Housing Crisis from the Perspective of Young People and
Planner (Doctoral dissertation, University of Gloucestershire).

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