The Housing Market refers to the supply and demand for houses, usually in a particular country or region. A key element of the housing market is the average house prices and trend in house prices. (see: History of House prices)

The Housing Market includes the following features

• Supply of housing – quantity of housing strock
• Demand for housing
• House prices
• Rented sector. Buy to let investment and demand from tenants
• Government intervention in the Housing market

Factors which affect the Housing Market

• Interest rates – which influence cost of variable mortgages
• State of mortgage industry, determines whether people are eligible for mortgages
• Economic growth, incomes and unemployment rates
• Population and demographic trends

Features of UK Housing Market

• The UK Housing Market is often volatile because of various factors. See: why the Housing market is volatile.
• The UK Housing market has an influence over wider economy. e.g. when house prices are falling, consumer spending tends to decrease.
• Because the housing market influences the economy and individual homeowners, it is important to try and be able to predict future movements in the housing market