University of Suffolk BABS: UK Housing Market Analysis Report

This report provides an in-depth analysis of the UK housing market between 2009 and 2019, examining the changes in average house prices during this period. It delves into the economic determinants influencing these changes, including affordability, consumer confidence, interest rates, population growth, and mortgage availability. The report further explores the impact of government actions and policies on the housing market over the same timeframe, considering factors like economic growth and retail incomes. Finally, it offers predictions on the potential impact of the COVID-19 pandemic on the UK housing market, considering various economic and market factors. The report concludes with a comprehensive overview of the findings and a list of references.

Task 5

Table of Contents
How have average house prices in the UK changed over the period 2009-2019........................3
What are the economic determinants of the changes outlined in your own answer to Question
1...................................................................................................................................................5
How has the government action over the period 2009-2019 affected the UK housing market...7
Predict what would be the impact of COVID-19 on UK housing market...................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

How have average house prices in the UK changed over the period 2009-2019
From year 2000 to 2007 there was a lot of revenue generated from different interest in housing
market of United Kingdom. And inflation in the price of properties and housing in United
Kingdom was found during that period (Chong, 2019). This led to generation of more equity for
all the home owners as well as the one who were in development of home ownership during that
time of period. This included a number of segment of United Kingdom‘s population. Due to the
rise in the prices of house in the area there were also increase in the depth for household. After
that the economy of UK wasn’t missed of recession and also the balance sheet of households
were fragile as there was decrease in demand of housing. An increase in number of indices was
found due to increase in house prices in United Kingdom (Gaffar and Subhash, 2020). The basic
comparison of housing price is usually done with the price which is asked for mortgage approval
and also the management of the completion of price. According to accounting there must be a
simple average price so that the composition of properties can be done easily. A location in UK
is meant for maintenance and collection of such data. Over last 20 years there has been an
inflation in annual house price which was based on local government, nationwide as a less
community his government. After 2007 there have been spectacular changes in the housing price
of United Kingdom. The situation arriving in United Kingdom is not similar to the average as
well as sustained pattern in the region of strong growth (Komara, Sinaga and Andati, 2019).
There have been seen a cyclical episode in housing prices of United Kingdom in past years. In
year 2000 there was an increase of 72% in these prices.

There were number of periods in which the prices of innovation have to be managed and the
nominal prices arrived shortly. It has been noticed that Halifax a nationwide house prices work
with the real-time and also they were managed very effectively (Lund and Måseidvåg, 2018).
And inflation rate was seen which was calculated through and leases of a number of different
between your house price inflation as well as nominal inflation. This was supposed to be close to
official retail price index as it was helping in analysing of various relative long term ratio of
leverage. This was related to sustainable level of housing prices and the long-term ratio. It was
also concluded that the earning distribution was differentiated by the higher ratio and in the
future it can also provide help in learning about increase of housing prices (Oraman and et. al.,
2018). Can be seen positive relationship between earnings as well as housing prices. Various
statistics equilibrium ratio between prices of the housing as well as earning of people have been
shown. An example of the relationship in change which is a reason due to structural shifts in
credit availability can also be seen.

What are the economic determinants of the changes outlined in your own answer to Question 1
Number of factors which are related to economy can be seen which have an effect on the
average price of housing within the United Kingdom. There are a number of elements which are
related to demand and supply of housing which are to be considered while analysing the
condition of housing in United Kingdom. Some of those factors affecting the price of housing are
mentioned below:
Affordability: The four WD of a housing relates to the rise in the income level of people which
can also affect the housing rent and the construction of housing (Pearson, 2017). When there is
economic growth as well as development in the economy the demand for the housing also
increases. The demand of housing is when the shift of peoples demands towards the luxurious
goods. Along with more earning the housing rent allowances are also increased and the demand

for housing becomes high. There have been seen the prices of housing in United Kingdom a
rising since 2019 which is a faster rate due to the growth of economy which is also been
increasing.
Confidence: in order to make such a high investment it is required by consumer to have
confidence. This leads directly to the demand of housing (Ren and et. al., 2017). It is necessary
that confidence of consumer must be in the positive. This industry is totally dependent upon
confidence of consumer due to which the rating of housing market is affected due to this factor.
If the consumer have confidence to buy a house it will gradually rise the demand in housing
refers referring to increase in price of houses.
Interest rates: it is one of the major factor which is affecting the pricing as well as demand of
housing in the industry. This also helps in determining the mortgage of interest repayment cost in
this industry (Rizal, Suhadak and Kholid, 2017). A number of homeowners in United Kingdom
are shifting from different type of mortgage rates as they are very common in day to day
dealings. It is often seen that due to any change in the base rates of bank there is a shift of
interest in mortgage payments. This is a major element which helps in defining the housing
affordability for a customer. It is required by mortgage payments to analyse various percentage
of personal disposal income so that the functioning can be managed easily.
Population of England: major factor regarding the demand of housing in United Kingdom is the
population of the country. There have been seen gradual growth in the population in 2019. This
increase have been way more than the 6 million trees in 2012. There are a number of people
who affect housing rates and some who do not but there is a change in demographic growth from
the people who are having huge demand for housing. The rates usually depend on the average
price of house (Morioka, Evans and de Carvalho, 2016). This cannot be directly related to
population but can be directly related to the dependent upon average size which needs
household. There are a number of demographic element as well as social elements which can
lead to increase in household number. The life expectancy of people are also linked with these
demographic changes. Various other factors can be the number of old people, the divorce rates as
well as the increase in single parent families. All these are reasons which led to high increase in
price of housing in United Kingdom.
Mortgage availability: Mortgage availability refers to the element which is affecting the demand
for houses in country. The demand of house is because the banks as well as a number of other

agencies are lending mortgages. The bigger income of bank is multiplied as the land mortgage
and this also relates to increasing demand for housing. It has been noticed that due to the credits
in crisis 2009 an increase in the cost of interbank lending and giving has been seen (Levytska,
and Vovk, 2017). Due to this the availability of mortgage finance was decreased. There were a
number of different products of mortgage which were withdrawn as it was difficult to manage
the property. There are a number of different mortgages such as 125% and hundred percent
which can be taken from bank of England. An increase in demand of bank due to various high
deposits and lending mortgages is also seen.
How has the government action over the period 2009-2019 affected the UK housing market
Economic growth and retail incomes: there have been seen the rise in income due to which the
encouragement and motivation of demand of housing is seen. This leads to increasing rent of
housing as well as housing prices. The statistics have proved that 22% of cost of printing is
increased. In the financial crisis there was a housing crisis but it also helped in continuous rising
of house price after 2011. It is required by United Kingdom is housing market to work properly
so that they can analyse expensive printing cost and also motivate a number of lenders so that
they can buy household which will help in stretching the budget and housing lad there are a
number of different increase in demand for housing in new houses which are building country
(Luqmani, Leach and Jesson, 2017). Great Britain is one of the city which has its experienced
increase in new houses in the past century. There has also been seen restrictions on planning as
well as using the land properly. In order to manage various problems in United Kingdom there
are a number of restrictions on building houses on various areas of greenbelt. Government of
United Kingdom has been affecting suspended property market and also housing market of the
country from last 20 years. The real estate agents in the country are not allowed to market new
homes and they’re also banned in visiting these areas where this sale have been conducted.
Government have highly affected the housing industry of the country in one or the other way.
Due to an economic decline and increase in the housing prices was seen. A number of big
ministers as well as lenders who have already invested their money in some of the banks were
using housing prices in order to manage the valuation. There were a lot of credit granted by them
due to the downfall in the economy in United Kingdom. It can be concluded that the survey of all
the properties is difficult to analyse and a number of people analyse various discussion on the
working of the particular housing industries. Various government regulations as well as policies

can also be seen affecting the buying and selling of houses in the country. An example can be
taken as during lock down due to cOVID-19 pandemic. The government have started lock down
due to which any individual cannot go to any other place. A number of houses are left for sold in
this situation. There are also no visitors who can make transactions for various houses in this
situation of lockdown. Barclays and Lloyds banking group who are largest lenders in United
Kingdom do not provide any mortgage investment (Schaltegger, Hansen and Lüdeke-Freund,
2016). This bank services have been stopped for providing mortgages in remote areas. They have
only made it possible for total of 40% of the property. It is necessary that 40% of the value of
property should only be provided to the customers. These mortgages offers are only valid for
three months with which have led customers to exchange the number of contacts and also to
extend the extension of mortgage offer.
Predict what would be the impact of COVID-19 on UK housing market
It is required by the economic conditions that they are managing the proper understanding as
well as analytics of the housing market because there is effect due to the pandemic of covid-19.

There is need of managing the different aspects which are related to this pandemic and its impact
on the housing apartments and marketing. The covid-19 pandemic has affected a lot of housing
marketing of various countries. There is need of managing this problem as it will decline the
sales as well as prophets that are made by the housing market. This is important for the
management of housing companies that they must concern about the impact of covid-19 on the
housing marketing of UK. From the history it can be concluded that housing price as well as
French in Paris and Amsterdam have been reduced sense 2020. Covid-19 is a problematic
pandemic that has been occurred and it has badly affected whole world. There are different
aspects of life which affect directly to the housing marketing of any country. There is need of
emphasising upon the effects which it is having on different countries. It has to be managed that
all work is done in effective manner. Different factors which are affecting the house and
marketing of the country includes modern medical understanding regarding spread of various
diseases and viruses, death rate, fertility rate, etc. it is a major concern which the housing
industry of UK mast work upon for managing the work of the housing markets in countries.
There is normal and stable condition of the house prices due to management of Britain. There is
a gradual increase in the housing prices since 2000. More investing upon properties and housing
since then and it has affected the price of UK market. This gradually increases because of the
increased standard of living style of people. There is also increase in income of people and they
have gradually started thinking about the investment in buying houses. There is also need of
managing the fix player of housing in different countries so that there is proper management of
the housing department supply. In the year 2020, It is seen that the housing department was
doing well in the initial stages then there was few cases of covid-19 patients. The housing
department has decided for gathering momentum in order to generalize the election. this consists
of housing management and working effectively and managing the market return. It is seen that
there is proper managing of all the working regarding housing department so that there is no
problem in future for the profits of this type of business (Wang and Kimble, 2016). because of
the coronavirus pandemic the sales of housing department have declined. When there was a case
of brexit few years before, there was problem due to the shifting of people and does the housing
marketing was disturbed badly. The sales of the UK housing has been affected by the crisis
caused by corona pandemic. After 23rd march,. All the countries was supposed to lock down and
due to this, there were many problems which have been affected by the housing market. The

housing department of UK was affected and it created problem for the economic development
and growth of various countries. It is very important for the countries to manage the functioning
as well as working of housing department so that profits and sales can be managed and it will
gradually increase. Various opportunities are present which are involved in the promoting and
offering of the housing department. The house hunters were not allowed to properly visit and by
the properties but they are only allowed for conducting virtual viewings. Due to this there was
decrease in the number of people buying the houses. According to the HMRC, it is concluded
that there are residential property transactions which has suddenly declined to 54% last month
within UK. these were 60% higher in the year 2019 and this clearly explains that the housing
apartments marketing have been effected a lot after the corona pandemic. Housing marketing has
to have potential buyers in the market who are planning and waiting for ordering a good and big
house. It is very important for all the companies to manage the housing prices so that they can
provide services to people and they will buy the houses. There are approximately 20% of people
who are considering to shift to new places after the lock down and due to this there is gradual
increase in the housing prices and profits that are owned by such companies. There is also need
of improving the home standards and so that religious to attract new people and making them to
buy the new houses provided by the companies. Lost their jobs in the covid-19 and for
supporting these people government is taking initiatives to provide them housing at lower rates.
Interest on housing marketing and apartments can increase their sales by selling the properties
and housing to government at affordable prices. Local government of UK is not able to give St
incentives to the local authorities and for starting new development plans in the country. There is
proper management of the housing supply and managing the prices which are affected after
covid-19. Important for buying and selling of houses for police for that there is easy way for
increasing the profit of housing departments. It is also important to manage the various phrases
of business after lockdown is over. There will be minimum factors which will be affecting the
economic destruction that can take place due to the economic slowdown. new houses should be
constructed so that there will be small fraction of the total stock which can be used for in three
profit ratio. Help in supplying and managing the fall in the housing marketing. It is also seen
that due to the induced death because of the covid-19 there is increase in the supply of the
housing markets. There are various other people who have lost their tiles due to this pandemic
and their houses sold to new people. This has developed opportunities for or managing the

selling of such kind of properties to new people and increase the profits and sales. It is also
important for managing the effectiveness by using fixed deposits and savings for surviving in the
lockdown period. There is also a need for managing the money in order to ensure the impact of
covid-19 on housing market. It is seen that this is related with the economic magnitude and the
altitude which the industry has to work bond for managing the profits and sales. There are also
row transactions due to the increase in gorging price and the upcoming months there will be
good profits for the regional entices. From the sources it is understood that the office for
National statistics has suspended the official house price index because there having insufficient
management and data information. Due to these cases It is seen that there is postpone of time for
ordering the new house and managing the economic downturn because of the covid-19 and due
to this the housing industry is suffering from great depression.
CONCLUSION
It was analysed from the above discussion is that there are various regulations as soon as
policies of housing industry which have to be followed in order to manage the various factors
involved in this industry such as taking loans from Bank. It is very important to the companies to
manage the increase in demand of housing. There is also need of managing the increase in
housing prices so that there is proper management of the affected areas in order to have good as
well as save environment. Did also important to manage the various factors which are affecting
the housing prices and these have to be managed at portraits for shifting the proper management
of the industry.

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