Contemporary Business Environment: UK House Sales Analysis Report

This report analyzes the UK housing market from 2009 to 2019, examining the fluctuations in average house prices during this period. It delves into the economic determinants influencing these changes, including economic growth, unemployment, interest rates, mortgage availability, financial slowdowns, and cash supply. The report also explores the impact of government actions, such as low interest rates and subsidies, on the housing market. Furthermore, it assesses the effects of the COVID-19 pandemic on the UK housing sector. The analysis covers regional variations in house prices, identifies key factors affecting the market, and provides insights into the interplay between economic forces, government policies, and external events.

UK Houses Sales

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Average house prices in the UK changed over the period from 2009 – 2019........................3
Economic determinants of the changes outlined....................................................................7
Government action over the period 2009-2019 affected the UK Housing market.................9
Impact of COVID-19 on UK Housing Market.....................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In recent time, different external and internal factors have major impact the business
environment of each kind of industry and also make customer be more conscious about their
spending as any think can happen in short duration (Farrall, Gray and Jones, 2019). The
breakthrough of Covid-19 have totally change the working nature of every business and resulted
in the loss of job, livelihood and resources. In UK, the dynamic business environment makes a
challenging job for all most every company dealing in different industry and as a result the
economy is decreasing in present time. Business environment are being described as a structure
enveloped by a corporation's in which it is working that includes various factors that contribute
to internal and external results. In a company there are numerous internal and external influences
that may be defined with the usage of a comprehensive system, in the sense of the latest study
this analysis is about the particular economic landscape in the UK where the primary emphasis is
on paying for the property sector.
The report includes how the average home prices in the UK have increased during the
2009 time frame, what are the economic determinants and the changes that arise as a result of
rising average UK house prices from 2009 to 2019. In addition, report also includes how
government policy within the UK property market is impacted and what their impact will be in
the 2009 and 19, the covid-19 is identified and predicted, and its effect on the UK housing
market are also discussed.
TASK
Average house prices in the UK changed over the period from 2009 – 2019.
It's indeed crucial to recognise what home prices are in attempt to comprehend the
modifications here between average house prices throughout the UK from 2009 to 2019.
Average housing prices are really a halfway point including all house unit sales at a given period
in a specific market price. Each organization's functioning enables the delivery of products and
services to satisfy consumer needs within the respective business. There are various forms of
enterprises like profit-oriented and non-profit companies that are intended to offer resources to
individuals residing throughout society. This can also be described as just a mean price close to
the sum price when adding all together selling value of the product and afterwards dividing them
by the selling number.

The average UK home values, semantic differences happen throughout the 10 year period
from 2009 to 2019. The average home values mostly in UK are identified to have enhanced by.

9% during the year 2019 although unshackled since May 2019 during the last 3 years there's
been a periodical decline of UK home prices due to a downturn over southern and eastern
England. It is noted that even in June 2019 the average UK property value was 230000 euros that
is 2000 euros greater than a certain time in 2018 as well as 1 lakh euros greater than that of the
June 2009. The following graph shows the average homes prices in the UK rose by 0.1 per cent
among May 2019 and June 2019.
From the data taken through different sources of country, then it could be determined that
the increase of house cost in Wales within present time have been increased by 5.5 percent
and 50 percent from 2009. Throughout the present times of July 2019 the mean cost of homes in
England is 167673 Euro and 127000, 130000 and 141000 euros individually in other regions
such as England, Scotland and Ireland. In the context of, global average house rates, the new
home prices across all these regions are listed as a big gap owing to inflation rate shifts and
several other market forces. Depending on the latest July 2019 location, England, Wale, Scotland
and Northern Ireland have quite an average house price of 247000, 164000, 151000 as well as
136000 euros individually.
It have been observed that from the development of average property prices or England country
within UK has the highest housing prices from 2009 to 2019 that's around 1 lakh Euros. It is
because inside the part of London, there have been numerous external factors and social factors

that are clearly connected to the UK economy. There have been various forms of theme parks as
well as better service services that allow them to raise their average property values and also
draw large numbers of people to purchase homes in that location. If it has been discussed
regarding the latest data than in June 2018-2019 England area mostly with fastest increase in
the average home price growth is by 3.2 %. It represents a significant growth relative to the
entire expansion of 0.9% throughout the UK (Lea, 2019).
Economic determinants of the changes outlined
There have been multiple factors that directly affect the prices of housing units. Below are
all of these points discussed according to the above details:
Economic growth: Protein economic system is the chief executive linked to increased housing
average throughout the United Kingdom. The explanation seems to be that house price inflation
relies on income with stronger economic growth and citizens will invest money on
accommodation and also increase the market and raise rates for affordable housing inside the
economy. This has been, specifically affected on the UK residential average where competition
for accommodation is frequently seen and dynamic in form of salaries contributing to individual
income rises. There seems to be a financial crisis in the financial system among 2012 and 2015
that has affected the incorporation including its sale that also stops customer from purchasing. In
addition, individual who are losing their jobs would then decline underneath their fee structures
and their residence in despondence (Cheshire and Hilber, 2020).
Unemployment: This is also a consideration that can be seen in the British economy's rising
pace in housing level in 2009 to 2019 because London has the lowest unemployment level in the
UK. This has influenced the optimistic developments as well as the rise in the UK's overall
housing level. Even as path to market is closely linked to economic prosperity and so few
individuals would be willing to buy an unemployed home. That was because job creation
provides an individual with different facilities in which humans could save the capital to
purchase a particular property for their living and also pay his bills on various residential housing
next to arranging all the finances from their job. These also had an effect on the national
unemployment level and direct effects on individuals by limiting everyone to accessing property
markets.
Interest rates: This is often a significant economic element, which is related to policy activities
and the development of multiple accommodation services throughout the UK as well as has the

direct effect of the rise throughout the residential level in the UK (Yilmaz, Talavera and Jia,
2020). This increases the need for residential services due to overt political interference and
weak competition in the British sector. That's because interest rates impact the monthly income
valuation also for framework and higher interest for year would start increasing the cost of the
loan and reduce consumption for the residences to really be decided to purchase. From the other
side, high interest leasing renders rental appealing, landlord with flame at reasonable mortgage
prices has a much more important impact on the economy. The rate of interest inside the UK is
small due to policy interference which makes it cheaper for various buyers to shop their property
and raise the price of homes (Miles and Monro, 2019).
Mortgage availability: Many banks throughout the UK use to provide a kind of land
mortgage mostly during 2009-2013 rise, allowing consumers to spend large amounts of revenue
from various types of banks that is five times their yearly salary. This have positively influenced
upon that average since there are significant groups of people involved in designing their
residences and also buying property for residential. Due to this, there have been increases the
house level in the United Kingdom and provide the economy with different locations in which it
can improve the economy and also offer different opportunity to bring new company projects
within the country. In contrast, commercial banks can offer 100% of the loan and give hippo
stability to generate imply the housing demands us some more people will purchase now at
banking are company expands that provide various kinds of financial support to customers who
choose to invest on getting a property with an rise in UK housing price.
Financial slowdown: Economic slowdown seems to be the main element in financial conditions
which have a significant effect on the average property prices, which is observed from the above
graph related with the average cost of homes is rapidly increasing (Clark and Lomax, 2020). This
is because there is tremendous development inside the UK's business conditions where a
substantial amount of creditors are in policy policies. Although there is economic slump across
the world from 2013 to 2015 and mid-2016, which has also affected the UK economic activity
and decreases the estimates by trying to make it negative impact over housing market.
Development is unfavourable in Whales and Ireland, which is (-0.2 %) and (-0.5 %) respectively.
Cash supply: It is related to the movement of money throughout the property market is
specifically linked to the health and sustainability. This is mainly because the accessibility of
funds in the economy would then decrease whenever the cash is unlikely to obtain housing

prices. If working capital inside the economic system is rapid, it will have a direct effect on
investment benefit in which they actually invest further in the real estate and construction
company advantages of easy money efficiency and high transaction costs (Fuerst, Haddad and
Adan, 2020).
It can be ascertained from the following. This has different economic factors which directly
impact the function of various housing totals within such a country's economy. Further, the
United Kingdom trades inside the different factors that have had a direct effect on corporate
performance; however the overall significant impact observed over the property market .It has
been observed in the UK economy which is consistently increasing the average price for
housing.
Government action over the period 2009-2019 affected the UK Housing market
Government has played an important role in the UK property market where it has various
beneficial and detrimental effects on the residential trading organizations. This is because there
are multiple kinds of policies and procedures that are established by the organization to save the
consumers’ interest as well as level access businesses that deal with the residential building and
the market information of separate buildings on the UK property market.
Impact
Low interest rates: Interest rates are a significant factor effecting the selling and buying of
households inside the economic system. In the period from 2019 to 2013, the UK state offers
different services where it is the market interest rate where a person can achieve take out a loan
to buy a house where the rate of interest is also low. Self-purchasing and improving the buying
of houses in the market as well as eventually lead to an improvement in the net selling of
houses.no investment further raises the appeal of various cultures as well as allowing them to
handle funding to buy specific styles of houses (Nash, 2019).
Subsidies: Subsidies to the main industry that entice large numbers of customers to the
residential sector as a means of reducing their economic strain and increasing the purchase of
houses within the economy. From 2013 to 2016, there is a global recession in the economic
system and, in order to promote economic growth and increase the company of real government,
distinct subsidies were granted to people who are willing to find new houses.

Valuation of land: Land is the fundamental resource needed to build a home. There are specific
policies in the field of land valuation, which vary from region to nation. For increase in the
selling of multiple companies in the year 2016 British government introduces a new legislation
that is specifically linked to use land valuation policies where specific buyers can manage the
houses easily. Also provide facilities for two separate real estate dealers where they can increase
their business and draw large numbers of customers due to easy policy and longitudinal
assessment which cost a low tax liability on each person.
Cash flow: Cash flow is also a significant element in the hands of government and can be
implemented to improve home prices which acquisitions in the market and support the real estate
sector market. In the British government framework, in the year 2016 when real estate market
leaves its nightmare, British government introduced numerous types of methods and one of them
is to increase the cash flow. With this country, it began investing in various types of real-estate
practices where it might reject photos inside the society and how the real-estate sector is by
having sufficient cash in the numerous residential and other operations activities (Jiménez-
Moreno, 2020).
The above actions are being used by the UK order to raise profitability as well as enhance
the real-estate industry inside the economy. It has also had a good effect, as it can be observed
that if it is full in 2009 and 2019, the annual home prices would rise by 1 lakh Euro. Judgment
that change which has had a positive impact on the real estate company as well as stimulating the
economy and providing additional benefits.
Impact of COVID-19 on UK Housing Market
Covid-19 is considered to be the most important factor that has had a devastating effect on
the entire planet, serving like a nightmare. It also influenced the UK housing sector directly,
limiting their development and also halting all the operations due to mass distribution. UK rarely
recovers first from covid-19 outbreak, but there are significant amounts of fatalities and long-
lasting lockdowns within the country benefit of the entire. Covid-19 has significant
consequences mostly on UK property market from which some of these are defined below:
Decreases cash flow: All operations of each and every industry within the economy have to be
closed down due to emergent of covid-19 sending mass expansion of virus throughout UK. It
also decreases the UK's economic development and also adversely affected mostly on

effectiveness of individual features regarding the housing working capital. This is significant
part, as cash flow being in individual budget help people of UK to buy home and increase the
entire housing market. They should save funds for the future, since there is no capital investment
in the entire country that reduces the working capital in the financial system and has a
pessimistic influence over the UK housing market (Geels, McMeekin and Pfluger, 2020).
Low availability of finance: Covid-19 separate global problems within the United Kingdom that
often impact workers and other industrial roles and that are closely related to international
financial capital. Because of covid-19 government wanted to shift focus on health insurance
resources and amenities related to healthcare amenities requested large investment which also
brings financial crisis into the economy due to the investment in healthcare building
infrastructure (Oyamada, 2020).
Changes in trend: Covid-19 has had a direct effect on the cash and investments of people who
live in the world as well as in the UK, since they have to invest more on health services that are
linked directly to their investments. Due to the mass lockout there is no wealth creation in the
UK that has had negative effects on people 's economy and on savings. Now people have begun
to spend more on healthcare services and change the tendency to save money rather than
investment.
Increase cost of land, labour and material: Covid-19 also had a negative effect on land work
and components directly linked to the United Kingdom's housing markets. Because there are 19
workers active in the property sector, substantial quantities are already withdrawing from the
United Kingdom because of the lack of employment (Shaw, 2019). Land and resource prices
have also been rising and have a negative effect on the company, as their costs have risen in the
manufacturing and development of various housing-related facilities. Due to this interest of the
client, the cost of same content has to be high. This has had a negative impact on housing selling,
that can have negative consequences in the future, even though immigrants are unlikely to return
to the UK to increase prices for various infrastructure projects and to retard the finalization of
these initiatives.
CONCLUSION
From the above mentioned report, it can be inferred that the UK housing industry
consistently rises as a consequence of improvements to the UK 's expected home prices from

2009 to 2019, which is directly related to numerous economic influences and predictors that play
a role in raising which mean home prices. However, in future UK existing businesses the adverse
effects of covid-19 reduce working capital funding and the effect on land labour and equipment
costs that will stop the operations and reduce likelihood of succeeding in several areas of this
kind of market exist.