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