Definition of the Housing Market

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

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