HOUSING MARKET IN THE UK

Housing Market in the UK

Table of Contents

Introduction3

Discussion3

The Importance Of the Housing Market5

Issues related to UK Housing Market7

Implications related to UK Housing Market8

UK housing Market, Construction Industry and Consumer Confidence8

Effects Of Stagnant Housing Market On Consumer Spending10

Future scenarios11

Conclusion12

References13

Housing Market in the UK

Introduction

The housing market of the United Kingdom has shown a good amount of flexibility in 2012 despite the terrible show of the economy of the UK. The UK housing market share comprises property managed by housing associations, local authority rented and privately rented accommodation, and occupied and privately owned apartments and houses. The house prices in UK went up by 1.5% since last one year. The continuing tendency for house prices in the United Kingdom is up, but house prices transformations are very repeated. This paper discusses UK Housing Market.

Discussion

The difference in The housing market of the United Kingdom was shown by official numbers proving that the prices of houses in UK were up 1.5% in the year to October - but more than half of the rise was brought by the South East and London.

The UK has high standards of living but income inequality is still evident in the country. For the first time in more than 100 years the standard of living in the United Kingdom has surpassed that of the United States, according to a UN report. While this point may be arguable, there is no suspicion that the standard of living experienced by UK residents is similar even with that enjoyed by people living in Scandinavian countries.

The Office for National Statistics (ONS) statistics demonstrated a monthly 0.2% growth to an average of £231,000. But as London formed 0.7% of the 1.5% yearly growth, the market in the capital is decelerating. A report by Office for National Statistics showed that yearly increase of house price in London braked, from 5.2 per cent in September to 3.4 per cent by October. (ONS House Price Index, 2012)

The UK economic slowdown has adversely affected the creation of jobs. The unemployment rate was 8.1percent in 2011, and is expected to reach 8.3percent by the end of 2012. Nearly 2.5 million people were unemployed in 2011, which was the highest number in 16 years. The country attained a poor growth rate of 0.8percent in 2011, and the economy was in recession by the end of Q1 2012, when GDP contracted by 0.2percent. (Mullins 2012, 23-125)

There were 21 million households in the United Kingdom by 2010. In early 21st Century, 70 per cent houses were owner-occupied whereas in the early 20th Century, less than 10 percent of all houses were owner-occupied. In the first quarter of 2012, the economy of the UK contracted and growth in the second quarter of 2012 was collapsing because of increasing worries about the euro's survival. Looking ahead, the overall outlook was sluggish mainly due to subdued consumer spending - an indication of fragile income growth of household, slow major export markets and tight credit conditions, as well as headwinds ...